Dividend Growth Model

Particulars

Shell Global

BG Group

Dividend Payout Previous Year (D0)

0.79

0.33

Dividend Payout Current Year (D1)

6.27

0.42

Cost of Capital (k)

8.50%

2.49%

Expected Growth Rate (g)

4%

7.90%

Price Current Year (P1)

69.56

85.83

Price Previous Year (P0)

72.83

98.55

D1/(k − g)

Intrinsic Value (V)

69.8887568

84.154552

(D1 + P1)/(1 + k)