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.

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?

Hedge funds and financial analysts typically use a variety of approaches to determine the intrinsic value of shares. With that being said, the Gordon Growth Model is a subcategory of a larger group of ...