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.

Discover how the Multistage Dividend Discount Model uses varying growth rates to value stocks, including blue-chip companies, throughout different business cycles.

The financial worth of an investment depends on its valuation. Additionally, the top rule of investing is to buy low and sell high. However, evaluating the value of an asset is quite challenging.

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 ...