Using your example Dividend Discount Model Calculator numbers - g 5%, div $1.00, risk free .3%, mrkt return 6.1%, beta 1.5 - I get a discount rate of 9% [from your estimated ROR formula] and a FMV ...

Example: Dividend Growth and Stock Valuation To value a company’s stock, an individual can use the dividend discount model (DDM). The dividend discount model is based on the idea that a stock is ...

An example of the dividend discount model Let's say that a certain stock is expected to make a $1 dividend payment next year. If its dividend has historically grown by 5% per year, it's fair to ...

Which gives us a share price of $19.33. Currently, as of 5/22/2017 GE is trading at $28.18, so the dividend discount model would lead us to believe that GE is currently overpriced.