According to the Gordon Growth Model, an increase in the growth rate of earnings would lead to an increase in the current value of a stock.

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The Gordon Growth Model (also known as the Dividend Discount Model for a perpetuity) calculates the intrinsic value of a stock based on a future series of dividends that grow at a constant rate. According to the model, an increase in the growth rate of earnings (and consequently dividends) would increase the present value of those future dividends, leading to an increase in the current value of the stock.

According to the Gordon Growth Model, an Increase in the Growth