OpCo: stable-growth dividend discount
A Gordon growth valuation of a regulated utility, where a perpetual dividend growing at a constant rate collapses to a closed form.
Every number below is checked against an independent reference implementation on every commit — period by period, and on each metric, inside a declared tolerance. See benchmark methodology.
The case
A stable-growth dividend discount valuation of a regulated utility — the constant-growth perpetuity, where value is next year's dividend divided by the difference between the discount rate and the growth rate.
The whole model is two drivers and one formula.
The reference
A widely used academic valuation spreadsheet, published free by its author with an explicit grant to download and modify. It publishes a nine-point sensitivity grid over growth rates alongside the base case.
Redistributable, and the workbook is committed under reference/.
What it exercises
| Pack | opco |
| Contract types | opco.exit_perpetuity |
| Language features | a single pack contract carrying a closed-form perpetuity |
| Conventions | constant-growth perpetuity, a value derived from stated drivers rather than supplied directly |
The perpetuity value is derived by the model from two stated drivers, a current dividend and a growth rate, rather than entered.
The result
The base case reproduces, and so does the source's own nine-point growth sensitivity grid.
The tolerance is 1e-6, the tightest in the suite: a closed-form perpetuity on exactly stated inputs has no rounding to absorb.
The delta
None.
Run configuration
{
"deterministic": {
"annual_discount_rate": 0.0
}
}Verified results
Checked period by period: 9 series across 1 periods — 9 values in all, each within ±1e-6 of the reference.
opco.exit.value.g041opco.exit.value.g031opco.exit.value.g021opco.exit.value.g011opco.exit.value.g001opco.exit.value.gm009opco.exit.value.gm019opco.exit.value.gm029opco.exit.value.gm039