Dividend Discount Model Template – Free Download

Dividends, Excel, Free Financial Model Templates

A Very Simple Calculator for Valuing Dividend-Paying Stocks

1. Overview

The Dividend Discount Model (DDM) Template is a free, easy-to-use Excel spreadsheet tool that enables users to calculate the intrinsic value of dividend-paying stocks based on their future dividend payouts. Whether you are a beginner investor or a finance professional looking for a quick calculator, this template is completely free.

Built for simplicity, this .xlsx Excel file includes two widely used dividend valuation models:

Gordon Growth Model (GGM) – Ideal for stable, mature companies with predictable dividend growth.
Multi-Stage Dividend Discount Model – Designed for companies with expected changes in dividend growth rates over time.

2. What You Get When You Download

Upon downloading the template, you’ll receive a fully editable Excel (.xlsx) file with:

Gordon Growth Model (GGM) Calculator
Includes inputs for expected dividend, dividend growth rate, and required rate of return.
Multi-Stage Dividend Discount Model Calculator
Allows for varying dividend growth rates over multiple periods before settling into a terminal growth phase.

3. Use Cases

This Dividend Discount Model template is useful for:

Equity Valuation of mature, dividend-paying companies
Comparing intrinsic value to market price
Learning or teaching fundamental valuation methods
Portfolio Management tools or investment memo preparation
Scenario analysis by testing different dividend growth rates or discount rates

4. Who Should Use This?

Individual Investors analyzing dividend-paying stocks
Equity Research Analysts building quick DDM assessments
University students and professors teaching valuation concepts
Finance professionals, including fund managers, advisors, and CFA candidates

File Details

File Type: Microsoft Excel (.xlsx)
Editable: Yes
Complexity: Beginner to Intermediate
Price: Free Download

To better understand dividend discount models and the Gordon Growth Model, please feel free to refer to this article: What is a Dividend Discount Model.

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