Compute Stock Price: Input Values
The stock-price formula is
P = D(1+s)/(1+r) + D(1+s)
2
/(1+r)
2
+
...
+ D(1+s)
T
/(1+r)
T
+ E(1+g)
T
Z/(1+r)
T
December 31, 2024, actual values. Enter others if desired.
Dividend value at the beginning of the horizon (D)
Earnings value at the beginning of the horizon (E)
Values to be computed:
?
S&P price at the beginning of the horizon (P)
?
S&P price at the end of the horizon
Your input values:
Growth rate of earnings (g)
Length of horizon in years (T)
Discount rate (r)
Growth rate of dividends (s)
PE ratio at the end of the horizon (Z)