Dividend Discount Model

Dividend Discount Model MCP Connector for Claude

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Calculate intrinsic equity value using Gordon Growth and Two-Stage DDM models.

3 tools Official Updated Jun 28, 2026 Official Vinkius Partner

This MCP server provides a professional financial valuation engine for determining the intrinsic value of stocks. It implements the Dividend Discount Model (DDM) through several specialized tools: calculate_intrinsic_value for both single-stage and two-stage growth projections, estimate_cost_of_equity using the CAPM framework to determine required returns, and evaluate_valuation_gap to compare market prices against calculated intrinsic values. It is designed for investors and analysts needing precise, model-driven equity valuations.

ddmgordon-growthcapmequity-valuationintrinsic-value

3 tools expose this connector's capabilities to your AI agent.

calculate_intrinsic_value

Calculates the estimated fair market price of a stock based on projected dividend growth

estimate_cost_of_equity

Determines the required rate of return using the CAPM framework

evaluate_valuation_gap

Compares current market pricing against intrinsic value

See how to talk to your AI agent using Dividend Discount Model.

Calculate the intrinsic value of a stock with a $2.00 dividend, 5% long-term growth, and 8% cost of equity.

The estimated intrinsic value for the stock is $66.67.

Estimate the cost of equity if the risk-free rate is 3%, beta is 1.2, and the equity risk premium is 5%.

The calculated cost of equity is 9.0%.

A stock is trading at $100, its intrinsic value is $120, and the current dividend is $4. Is it a good buy?

The stock is undervalued. The implied dividend yield is 4.0%, and the valuation status is 'undervalued'.

The single-stage model (Gordon Growth) assumes a constant growth rate forever. The two-stage model allows for an initial period of high growth followed by a transition to a stable, long-term growth rate.

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