Determination of Gordon growth constant in Czech environment / Stanovení Gordonovy růstové konstanty v prostředí ČR

The conventional one stage pattern of steady growth is based on two assumptions.These assumptions are positive and their meaning for the company consists in thepossibility of preserving the competitive advantage in the area of completedinvestment and the ability to create repeatedly new investment opportunities in thefuture without affecting its competitiveness. The contribution presents severalmodels based on Gordon growth model, namely basic one-stage model, two-stagemodel, H-model, and three-stage model. In multi-stage models, the Gordongrowth constant is fully applicable and its disadvantages are reduced. Themethodology describes the individual models and presents the current situation inthe stock market in the area of dividend payments, and describes the position ofthe Gordon growth constant if used for the calculation of the future intrinsic valueof shares. Using the information from the stock market and the basic calculations,it is possible to determine whether Gordon growth constant is suitable for theshare titles in the Czech environment. The objective of the contribution is todetermine the methodology of Gordon growth constant for the Czech Republic.