The present value of a perpetuity calculator is used to calculate what an infinite stream of identical cash flows made at regular intervals over time is worth today.

# Tag: Perpetuity

## How to Value a Stock

The present value of a growing perpetuity formula is used to calculate the present value of a series of periodic payments which increase at a constant rate each period. The formula can be used as the basis for the Gordon growth model when considering how to value shares and stocks.

## Stock Valuation Calculator

The stock valuation calculator works out the price of a stock using the present value of a growing perpetuity formula. The calculator is based on the Gordon growth model, and assumes dividend payments are growing at a constant rate each period and continue forever.

## Present Value of a Growing Perpetuity Formula

The present value of a growing perpetuity formula is used to calculate the present value of a series of periodic payments which increase at a constant rate each period. The payments made at the end of each period, continue forever, and have a discount rate i% is applied.