Last version published: 02/02/2018 14:49
Publication number: ELQ-60016-2
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Gordon Growth Excel Model
An Excel Valuation Model to value the equity in a stable firm paying dividends, with stable growth
Prof. Aswath Damodaran offers you this Best Practice for free!
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This is the output from the Gordon Growth Model
- Current Dividends per share
- Cost of Equity
- Expected Growth rate
Best suited for firms growing at the same rate as the economy and paying residual cash as dividends.
Assumptions in the model:
1. The firm is in steady state and will grow at a stable rate forever.
2. The firm pays out what it can afford to in dividends, i.e., Dividends = FCFE.
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