Investors buy stocks to participate in the growth of a company. Many stocks reward investors with dividend payments, but how do you know whether you’re paying more for a stock than what it is worth?

Arguably the most important questions an investor must ask is: “How much is the stock actually worth?” There are many methods to answer this question. One popular method is the Gordon Growth Model.

Hedge funds and financial analysts typically use a variety of approaches to determine the intrinsic value of shares. With that being said, the Gordon Growth Model is a subcategory of a larger group of ...

Generally speaking, the stock market is driven by supply and demand, much like any market. When a stock is sold, a buyer and seller exchange money for share ownership. The price for which the stock is ...

Stock prices rise and fall constantly, and many investors never seek to tie the movements of share prices to the fundamental health of the underlying company. Yet a stock's price reflects the market's ...

Use the Gordon Growth Model for dividend stocks, requiring consistent dividend history and growth. Calculate non-dividend stock growth using CAGR, focusing on stocks with reliable growth. Economic ...

Stock prices rise and fall constantly, and many investors never seek to tie the movements of share prices to the fundamental health of the underlying company. Yet a stock's price reflects the market's ...

Gordon's growth model is a simple but powerful way of valuing shares based on the dividends that the company is expected to pay in future. It gets its name from Myron Gordon, an economist who ...