The Gordon Model, also known as the Gordon Growth Model, is a method used to determine the intrinsic value of a stock based on its expected future dividends. It assumes that dividends will grow at a constant rate indefinitely. This model is particularly useful for valuing companies with stable dividend growth, allowing investors to estimate the present value of future cash flows. To apply the Gordon Model, one needs to know the expected annual dividend, the growth rate of the dividend, and the required rate of return. The formula is: Value = Dividend / (Required Return - Growth Rate). This model helps investors make informed decisions about buying or selling stocks, especially in the context of long-term investments.