Value of Stock Solution

STEP 0: Pre-Calculation Summary
Formula Used
Value of Stock = Expected Dividend Per Share/(Cost of Capital Equity-Dividend Growth Rate)
s = EDPS/(CCE-DGR)
This formula uses 4 Variables
Variables Used
Value of Stock - Value of Stock refers to shares of a company that appears to trade at a lower price relative to its fundamentals.
Expected Dividend Per Share - Expected Dividend Per Share is the expected sum of declared dividends issued by a company for every ordinary share outstanding.
Cost of Capital Equity - The Cost of Capital Equity refers to the financial returns investors who invest in the company expect to see.
Dividend Growth Rate - The Dividend Growth Rate is the annualized percentage rate of growth that a particular stock's dividend undergoes over a period of time.
STEP 1: Convert Input(s) to Base Unit
Expected Dividend Per Share: 200 --> No Conversion Required
Cost of Capital Equity: 25 --> No Conversion Required
Dividend Growth Rate: 20 --> No Conversion Required
STEP 2: Evaluate Formula
Substituting Input Values in Formula
s = EDPS/(CCE-DGR) --> 200/(25-20)
Evaluating ... ...
s = 40
STEP 3: Convert Result to Output's Unit
40 --> No Conversion Required
FINAL ANSWER
40 <-- Value of Stock
(Calculation completed in 00.004 seconds)

Credits

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Created by Kashish Arora
Satyawati College (DU), New Delhi
Kashish Arora has created this Calculator and 50+ more calculators!
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Verified by Vishnu K
BMS College of Engineering (BMSCE), Bangalore
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23 Financial Accounting Calculators

DuPont Analysis
​ Go Return on Equity = (Net Income/Revenue)*(Revenue/Average Total Assets)*(Average Total Assets/Average Total Equity)
Internal Rate of Return
​ Go Net Present Value = sum(x,0,Number of Periods,((Cashflow at End Period/(1+Internal Rate of Return)^x)))-Initial Investment
Net Operating Cycle
​ Go Net Operating Cycle = ((365/Purchases)*Average Inventory)+((365/Net Receivables)*Average Accounts Receivables)
Discount Lost
​ Go Discount Lost = (Discount Percentage/(100-Discount Percentage))*(365/(Final Payment Date-Last Discount Date))
Annual Equivalent Cost
​ Go Annual Equivalent Cost = (Asset Price*Discount Rate)/(1-(1+Discount Rate)^-Number of Periods)
Net Present Value
​ Go Net Present Value = sum(x,1,Time Period,(Cash Flow/(1+Internal Rate of Return)^x))
Annual Percentage Yield
​ Go Annual Percentage Yield = (1+(Stated annual interest rate/Compounding Periods))^Compounding Periods-1
Effective Yield
​ Go Effective Yield = 1+(Nominal Rate/Number of Payments Per Year)^(Number of Payments Per Year)-1
Depletion Charge per Unit
​ Go Depletion Charge per Unit = (Original Cost-Residual Value)/Total Number of Units Depletion
Value of Stock
​ Go Value of Stock = Expected Dividend Per Share/(Cost of Capital Equity-Dividend Growth Rate)
Shareholders' Equity given Share Capital, Retained Earnings and Treasury Shares
​ Go Total Shareholders' Equity = Share Capital+Retained Earnings-Treasury Shares
Operating Cash Flow
​ Go Operating Cash Flow = Earnings Before Interest and Taxes+Depreciation-Taxes
EBITDA
​ Go EBITDA = Earnings Before Interest and Taxes+Depreciation+Amortization
Discount Percentage
​ Go Discount Percentage = ((List Price-Price Paid)/Price Paid)*100
Residual Value
​ Go Residual Value = (Cost of fixed asset-Scrap Rate)/Lifespan
Long term Debt to Equity ratio
​ Go Long Term Debt to Equity Ratio = Long Term Debt/Shareholders Fund
EBIT
​ Go Earnings Before Interest and Taxes = Revenue-Operating Expense
Depletion Expense
​ Go Depletion Expense = Depletion Charge per Unit*Units Consumed
Shareholders' Equity given Total Assets and Liabilities
​ Go Total Shareholders' Equity = Total Assets-Total Liabilities
Discount Factor
​ Go Discount Factor = 1/(1*(1+Discount Rate)^Number of Periods)
Discount given Discount Rate and List Price
​ Go Discount = Discount Rate*List Price
Discount given List Price and Price Paid
​ Go Discount = List Price-Price Paid
List Price
​ Go List Price = Price Paid+Discount

Value of Stock Formula

Value of Stock = Expected Dividend Per Share/(Cost of Capital Equity-Dividend Growth Rate)
s = EDPS/(CCE-DGR)

What is the value of a stock ?

Value of Stock is a way to determine the value of the shares of a company and whether they are fair, over-valued, or under-valued. Stock valuation is not the same as the price of the stock and knowing how to determine valuation can be key in deciding if the price of a share is worth investing in.

How to Calculate Value of Stock?

Value of Stock calculator uses Value of Stock = Expected Dividend Per Share/(Cost of Capital Equity-Dividend Growth Rate) to calculate the Value of Stock, Value of Stock is a way to determine the value of the shares of a company and whether they are fair, over-valued, or under-valued. Value of Stock is denoted by s symbol.

How to calculate Value of Stock using this online calculator? To use this online calculator for Value of Stock, enter Expected Dividend Per Share (EDPS), Cost of Capital Equity (CCE) & Dividend Growth Rate (DGR) and hit the calculate button. Here is how the Value of Stock calculation can be explained with given input values -> 40 = 200/(25-20).

FAQ

What is Value of Stock?
Value of Stock is a way to determine the value of the shares of a company and whether they are fair, over-valued, or under-valued and is represented as s = EDPS/(CCE-DGR) or Value of Stock = Expected Dividend Per Share/(Cost of Capital Equity-Dividend Growth Rate). Expected Dividend Per Share is the expected sum of declared dividends issued by a company for every ordinary share outstanding, The Cost of Capital Equity refers to the financial returns investors who invest in the company expect to see & The Dividend Growth Rate is the annualized percentage rate of growth that a particular stock's dividend undergoes over a period of time.
How to calculate Value of Stock?
Value of Stock is a way to determine the value of the shares of a company and whether they are fair, over-valued, or under-valued is calculated using Value of Stock = Expected Dividend Per Share/(Cost of Capital Equity-Dividend Growth Rate). To calculate Value of Stock, you need Expected Dividend Per Share (EDPS), Cost of Capital Equity (CCE) & Dividend Growth Rate (DGR). With our tool, you need to enter the respective value for Expected Dividend Per Share, Cost of Capital Equity & Dividend Growth Rate and hit the calculate button. You can also select the units (if any) for Input(s) and the Output as well.
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