Dividend Growth Model | Cost of Equity Calculation (Vedanta Ltd Case Study)

In this video, I explain the Cost of Equity using the Dividend Growth Model (DGM) in a simple and practical way. We discuss:

What is the Dividend Growth Model (DGM)?

How the dividend payout ratio impacts valuation

Step-by-step calculation of Cost of Equity using the DGM formula

A real-world example of Vedanta Ltd where we calculate cost of equity based on dividends and growth assumptions

The Dividend Growth Model is widely used in equity research and valuation to estimate the return investors expect from a stock that pays consistent dividends.

By the end of this video, you will clearly understand how to:

Apply the DGM formula in practice

Interpret payout ratio and dividend growth

Use actual company data (Vedanta Ltd) to calculate cost of equity

This video is perfect for students, finance professionals, and investors who want to learn valuation techniques in a practical way.