Investors buy stocks to participate in the growth of a company. Many stocks reward investors with dividend payments, but how do you know whether you’re paying more for a stock than what it is worth?

Discover how the Multistage Dividend Discount Model uses varying growth rates to value stocks, including blue-chip companies, throughout different business cycles.

Arguably the most important questions an investor must ask is: “How much is the stock actually worth?” There are many methods to answer this question. One popular method is the Gordon Growth Model.