Gordon

Gordon is a widely used financial analysis framework that helps investors assess a company's intrinsic value. It assumes that a company's value is based on the present value of its expected future dividends, growing at a consistent rate. By estimating the next dividend, the growth rate, and the required rate of return, Gordon's model calculates a fair price for a stock. It is most effective for stable, mature companies with predictable dividend growth. This approach aids investors in making informed decisions by understanding whether a stock is overvalued or undervalued relative to its true worth.