Cost of Equity Calculator
Investing & MarketsCalculate the cost of equity using the Dividend Growth Model, based on expected dividends, share price, and growth rate.
Cost of Equity
The required rate of return equity investors expect, via the Dividend Growth (Gordon Growth) Model.
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Odeh Ahwal0people find this calculator helpful
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Investing & Markets calculators
Calculator Stats
Creators
Odeh Ahwal0people find this calculator helpful
Views
Helpful
Saved
Embeds
Investing & Markets calculators
Frequently Asked Questions
What method does this calculator use?
This calculator uses the Dividend Growth Model (also called the Gordon Growth Model): Cost of Equity = (Dividend per Share / Share Price) + Dividend Growth Rate. It works best for stable, dividend-paying companies.
What if the company does not pay dividends?
For non-dividend-paying companies, analysts typically use the CAPM method instead. See the CAPM Calculator for that approach.
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