Discover how the Gordon Growth Model calculates stock value using constant dividend growth, including key inputs and examples ...

Linear returns are simpler to calculate and involve subtracting the beginning stock price (S1) from the ending price (S2), then dividing by S1. Linear Return Percentage = [ (S2 - S1)/S1] x 100% ...

The other way to calculate the p/e ratio is to use per-share figures for both the “p” and the “e”, in other words the share price and the eps figure.