Is this good for hobbyists & makers?

Yes — this version of "Dividend Discount Model for a Black-Scholes option" is framed for hobbyists & makers exploring it for fun. Play with real physics and math, no license and no setup — just open and tinker.

Do I need to install anything?

No. It runs in any modern browser, free, with no account required.

For Hobbyists & Makers · Dividend Discount Model

Dividend Discount Model for a Black-Scholes option

Built for hobbyists & makers exploring it for fun. Play with real physics and math, no license and no setup — just open and tinker. Simulate a Black-Scholes option live below — adjust the inputs and watch it respond, right in your browser.

Dividend Discount (Gordon)Live

valuing a dividend stock

Controls

Presets

Next dividend D₁ ($)

Dividend growth g (%)

Required return r (%)

The Gordon growth model prices a stock as P = D₁/(r − g): next year's dividend divided by the gap between your required return and the dividend growth rate. As growth nears the discount rate the value shoots up — which is why the model is so sensitive. Educational tool, not financial advice.

▶ Run in Python

Data Inspector

Fair value$40.00

Implied dividend yield5.00%

Governing equation

P = \frac{D _{1}}{r - g} = \frac{2.00}{0.0900 - 0.0400} = $40.00

Reading this result: Fair value P = D₁/(r − g) = $40.00 rests on a 5.00-point gap; note the 5.0% yield plus 4% growth recovers your 9% required return.

Runs locally in your browser — free forever. Scale to the cloud when reality gets heavy.

or unlock everything with Pro →

Also for:Students Researchers Educators Engineers K-12 Students First Responders General version →

More with Dividend Discount Model

Dividend Discount Model for a stock option Dividend Discount Model for a retirement fund Dividend Discount Model for a mortgage Dividend Discount Model for a bond ladder Dividend Discount Model for a crypto portfolio Dividend Discount Model for an index fund Dividend Discount Model for a savings plan Dividend Discount Model for a startup valuation

Frequently asked questions

Is this good for hobbyists & makers?: Yes — this version of "Dividend Discount Model for a Black-Scholes option" is framed for hobbyists & makers exploring it for fun. Play with real physics and math, no license and no setup — just open and tinker.
Do I need to install anything?: No. It runs in any modern browser, free, with no account required.