{"id":16022,"date":"2013-05-03T13:24:45","date_gmt":"2013-05-03T07:54:45","guid":{"rendered":"http:\/\/vskills.in\/certification\/tutorial\/?p=16022"},"modified":"2024-04-12T14:14:45","modified_gmt":"2024-04-12T08:44:45","slug":"gordon-growth-model","status":"publish","type":"page","link":"https:\/\/www.vskills.in\/certification\/tutorial\/gordon-growth-model\/","title":{"rendered":"Gordon Growth Model"},"content":{"rendered":"<p>\u00a0<\/p>\n<h3><strong>Gordon Growth Model<\/strong><\/h3>\n<p><b>Gordon Growth Model<\/b>\u00a0is a model to determine the fundamental value of stock, based on the future sequence of dividends that mature at a constant rate, provided that the dividend per share is payable in a year, the assumption of the growth of dividend at a constant rate is eternity, the model helps in solving the\u00a0present value\u00a0of the infinite series of all future dividends. Since the assumption is based on the constant growth rate of dividends, this formula would be applicable mostly to well established and mature companies. This model was developed by Professor Myron Gordon, hence called Gordon Growth Model.<\/p>\n<p><strong>Related Terms<\/strong><\/p>\n<ul>\n<li>Discounted Cash Flow (DCF)<\/li>\n<li>Earnings Before Interest, Taxation, Depreciation &amp; Amortization (EBITDA)<\/li>\n<li>Free Cash Flow (FCF)<\/li>\n<li>Mid-Year Discount<\/li>\n<li>Terminal Multiple<\/li>\n<li>Terminal Value (TV)<\/li>\n<li>Valuation<\/li>\n<li>Weighted Average Cost of Capital (WACC)<\/li>\n<\/ul>\n\n\n<h3 class=\"wp-block-heading\">Apply for Equity Research Certification Now!!<\/h3>\n\n\n\n<p><a href=\"http:\/\/www.vskills.in\/certification\/Certified-Equity-Research-Analyst\">http:\/\/www.vskills.in\/certification\/Certified-Equity-Research-Analyst<\/a><\/p>\n\n\n\n<h4 class=\"wp-block-heading\"><a href=\"https:\/\/www.vskills.in\/certification\/tutorial\/certified-equity-research-analyst\/\"><strong>Back to Tutorials<\/strong><\/a><\/h4>\n","protected":false},"excerpt":{"rendered":"<p>\u00a0 Gordon Growth Model Gordon Growth Model\u00a0is a model to determine the fundamental value of stock, based on the future sequence of dividends that mature at a constant rate, provided that the dividend per share is payable in a year, the assumption of the growth of dividend at a constant rate is eternity, the model&#8230;<\/p>\n","protected":false},"author":1,"featured_media":0,"parent":0,"menu_order":0,"comment_status":"closed","ping_status":"closed","template":"","meta":{"footnotes":""},"categories":[3331],"tags":[4108],"class_list":["post-16022","page","type-page","status-publish","hentry","category-equity-research","tag-gordon-growth-model"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v24.5 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Gordon Growth Model - Tutorial<\/title>\n<meta name=\"description\" content=\"Gordon Growth Model Govt of India Certification for Equity Research professionals. 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