Cost of Equity (Ke) Calculator

Calculate cost of equity using both CAPM and DDM models simultaneously

Assumed risk-free return (%)

Beta

Assumed market return (%)

Expected next-year dividend per share

Current share price

Assumed perpetual dividend growth (%)

CAPM cost of equity

11.4%

Gordon-growth cost of equity

This is a scenario using only your assumptions, not a forecast or recommendation. Enter rates, fees, prices, and contract terms that apply to you.

CAPM and the dividend-growth model are separate estimates with different inputs and assumptions. They are not averaged without a rationale. DDM is highly sensitive to dividend, price, and perpetual-growth assumptions.