In practice, a common way to value a share of stock when a company pays dividends is to value the dividends over the next five years or so$,$ then find the terminal stock price using a benchmark PE ratio. Suppose a company just paid a dividend of $$1\mathrm{.}65.$ The dividends are expected to grow at $19$ percent over the next five years. In five years, the estimated payout ratio is $30$ percent and the benchmark PE ratio is $31.$