Gordon's Formula
The dividend discount model (DDM) is a method of valuing a company based on the theory that a stock is worth the discounted sum of all of its future dividend payments. In other words, it is used to value stocks based on the net present value of the future dividends. The equation most widely used is called the Gordon growth model. It is named after Myron J. Gordon of the University of Toronto, who originally published it along with Eli Shapiro in 1956 and made reference to it in 1959; although the theoretical underpin was provided by John Burr Williams in his 1938 text "The Theory of Investment Value".
The variables are: P is the current stock price. g is the constant growth rate in perpetuity expected for the dividends. r is the constant cost of equity for that company. D_1 is the value of the next year's dividends. There is no reason to use a calculation of next year's dividend using the current dividend and the growth rate, when management commonly disclose the future year's dividend and websites post it.
P = \frac{D_1}{r-g}

This is an excerpt from the article Gordon's Formula from the Wikipedia free encyclopedia. A list of authors is available at Wikipedia.
The article Gordon's Formula at en.wikipedia.org was accessed 15 times in the last 30 days. (as of: 07/17/2013)
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Dividend discount model - Wikipedia, the free encyclopedia
The equation most widely used is called the Gordon growth model. It is named after Myron J. Gordon of the University of Toronto, who originally published it ...
en.wikipedia.org/wiki/Dividend_discount_model
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Gordon Growth Model Definition | Investopedia
Definition of 'Gordon Growth Model'. A model for determining the intrinsic value of a stock, based on a future series of dividends that grow at a constant rate.
www.investopedia.com/terms/g/gordongrowthmodel.asp
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How to Use the Gordon Growth Model - InvestingAnswers
Mar 31, 2011 ... Plugging those numbers into the GGM formula gives you: Value of Stock A = ($1 * (1 + 0.07))/ (0.08 - 0.07) = $107. To apply the Gordon growth ...
www.investinganswers.com/education/stock-valuation/how-use-gordon-growth-model-2456
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Notes on the Gordon Valuation Formula (B-K-M 18
Notes on the Intrinsic Valuation Models and B-K-M Chapter 18. Roger Craine. 9/ 2005. Overview on Intrinsic Asset Valuation. An asset is a promise to a stream of ...
emlab.berkeley.edu/~craine/EconH195/Fall_11/webpage/Notes%20on%20the%20Gordon%20Valuation%20Formula3.pdf
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Gordon Growth Model - ReadyRatios.com
This model was developed by Professor Myron Gordon, hence called Gordon Growth Model. Formula for Gordon Growth Model. The formula used to find out the ...
www.readyratios.com/reference/market/gordon_growth_model.html
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Constant Growth (Gordon) Model - Ultimate Calculators
Gordon Model is used to determine the current price of a security. The Gordon ... by shareholders. Use the Gordon Model Calculator below to solve the formula.
www.ultimatecalculators.com/constant_growth_model_calculator.html
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Gordon Equation
Jun 28, 2004 ... The Gordon Equation states that the long-term expected real (inflation adjusted) return from the market should approximate the ...
raddr-pages.com/research/gordon.htm
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Gordon Growth Model - Definition - Moneychimp
Gordon Growth Model. Valuation formula holding that the total return of a stock investment will equal its dividend yield plus its dividend growth rate: R = D/P + G.
www.moneychimp.com/glossary/gordon_growth_model.htm
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homework - How to derive Gordon growth model - Mathematics ...
Jan 13, 2011 ... The formula for the Gordon growth model is: $\hspace{1in}P= \sum_{t=1}^{\infty} D\times\frac{(1+g)^t}{(1+k)^t}$. So summing the infinite series ...
math.stackexchange.com/questions/17423/how-to-derive-gordon-growth-model
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Applying the Gordon Growth Model - QFINANCE
G: The assumed constant rate of future dividend growth in perpetuity. The formula is as follows: Gordon growth stock valuation per share = D ÷ R − G. Back to top ...
www.qfinance.com/asset-management-checklists/applying-the-gordon-growth-model
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Gordon's Formula in science
Sine-Gordon Equation -- from Wolfram MathWorld
Its name is a wordplay on its similar form to the Klein-Gordon equation. The equation .... Cambridge, England: Cambridge University Press, 1988. Gibbon, J. D. ...
Hatched at MIT in 1959, the Gordon Equation soon grew into an ...
Jul 27, 2010 ... Myron Gordon at the University of Toronto in 1982. ... of finance who created a simple formula to calculate the fair value of a stock in 1959.
DCF Analysis: Coming Up With A Fair Value | Investopedia
The formula simplifies the practical problem of projecting cash flows far into the ... We can now calculate the terminal value of the company using the Gordon ...
On scattering and everywhere defined scattering operators for ...
On scattering and everywhere defined scattering operators for nonlinear Klein-Gordon equations. Philip Brenner. Chalmers University of Technology and The ...
[PDF]Predicting Equity Returns for 37 Countries - Duke University ...
Jul 12, 2002 ... We ask whether this is the case and apply the Gordon formula ... Tower, Economics Department, Box 90097, Duke University, Durham, NC ...
Analytical Solution to Sine-Gordon Equation | Hichem Eleuch ...
The sine-Gordon equation is defined by 2 z By using coordinates z1 = z and 2 1= .... Waves Solitons and Chaos Cambridge University Press, Cambridge, 2000 .
A New Approach to Numerical Solution of Nonlinear Klein-Gordon ...
2Department of Mathematics, Faculty of Science, Celal Bayar University, 45000 Manisa, ... The Klein-Gordon equation is an important class of partial differential ...
Dividend discount model - Wikipedia, the free encyclopedia
The equation most widely used is called the Gordon growth model. It is named after Myron J. Gordon of the University of Toronto, who originally published it ...
Sine–Gordon equation - Wikipedia, the free encyclopedia
The Sine–Gordon equation is a nonlinear hyperbolic partial differential equation in 1 + 1 dimensions involving the .... New York: Cambridge University Press.
[PDF]1 I. THE STABLE GROWTH DDM: GORDON GROWTH MODEL The ...
Some obvious candidates for the Gordon Growth Model .... growth rate (g) and payout ratio are the same for the first n years, this formula can be simplifed as.
Books on the term Gordon's Formula
Van Nostrand's Eclectric Engineering Magazine
Van Nostrand's Eclectric Engineering Magazine
1884
my first paper that his formula is simply and only a mongrel form of Gordon's; hence he is obliged to doctor it in passing from ... But there are some features of his comparison of Gordon's Formula with his own which ought not to be overlooked.
Strength Of Materials: A Practical Approach
Strength Of Materials: A Practical Approach
Prakash D.S. Rao
Johnson proposed a formula similar to Rankine-Gordon's Formula (Eqn.l4.47(b)) based on experimental results. The allowable stress for a column is given by aa = ay[l-b\2] [14.48] where b = a constant (= 0.000 03 for hinged ends). The curve ...
Journal of the Association of Engineering Societies
Journal of the Association of Engineering Societies
1893
Mr. Osborn: Gordon's Formula is quite a good proof of this, I think. Prof. Benjamin: I think myself that any body who uses Gordon's Formula every day has no fault to find with this. Mr. Osborn: I want to take a stand in favor of Gordon's Formula.
Standards for Preservation and Rehabilitation
Standards for Preservation and Rehabilitation
Stephen J. Kelley, 1996
In contrast, the cast iron column design provisions of the time were based on Gordon's Formula and Hodgkinson's scale model column tests, and thus were not representative of commercially manufactured, full-scale cast iron columns.
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Gordon's Formula
A Batch of Gordon's Formula [Food & Nutrition] : American Livebearer Association
Many people here are old hands at making Gordon's Formula, but there is surprisingly little about the topic on the
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The Positive Success Formula | Jon Gordon's Blog
Our positive energy, our belief system, our attitude, and our actions have a huge impact on the life we live and the success we enjoy.
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Return of the Brand: China’s hunger for trusted infant formula. | Gordon's shares
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Q: What do Paul Offit and infant formula have in common? A: Jay Gordon's Twitter feed | Seth Mnookin
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Gordon's Tech & Hobby Blog: Formula 1 Austin
I had a great time over the weekend for Austin's inaugural F1 race. It is an amazing track in a city I love.
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Shalonda Gordon Was Able To Pay Her Mortgage by Blogging? No Way… | Bill Cady's Empower Network Blog
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No Fenders - Formula 1 and IndyCar Racing Blog: DAKAR: 2012 Edition - Gordon’s Qatari HumDinger leads the way...
So late last year, as I was scramblin’ to ‘Ketsup on stories for Y’all, I suddenly wundered ‘bout the fast approaching 2012 Dakar. .
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Gordon Murray: "We were giant-killers" - F1 Fanatic
Ahead of McLaren's launch tomorrow here's an interview with the designer of some of their greatest racers, Gordon Murray, in an exclusive book extract.
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PRO CUP: Gordon’s Jennerstown Leap
Home-town driver makes all the right moves in Hooters 250.
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Video: Ghanaian ladies are finer than Nigeria ladies – Gordons | Ghana Filla.Net
The ‘Lords of the Ribs’ comedy show may have come and gone but few lessons learnt from the comedians will stay for a long time. Gordons who was
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