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Stock & Bond Valuation

Estimate the intrinsic value of complex stocks and bonds.

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About the "Stock & Bond Valuation" Calculator

This advanced tool is designed for investors and finance students. It uses standard financial models to estimate the theoretical value of a stock or bond.

For Stocks

We use the Gordon Growth Model (Dividend Discount Model). This model calculates the intrinsic value of a stock assuming that future dividends will grow at a constant rate. It's ideal for mature companies with stable dividends.

For Bonds

The valuation is based on the discounting of future cash flows. This includes the sum of all future coupon payments and the face value at maturity, all discounted at the market yield rate.

Formula Used

V0=D1k−g or P0=∑Ct(1+y)t+F(1+y)TV_0 = \frac{D_1}{k-g} \text{ or } P_0 = \sum \frac{C_t}{(1+y)^t} + \frac{F}{(1+y)^T}
  • V_0/P_0=Value of the stock/bond
  • D_1=Expected dividend
  • k=Required rate of return
  • g=Dividend growth rate
  • C_t=Coupon at period t
  • F=Face value
  • y=Market yield rate

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