The topic of this paper will be about stocks and valuating the real stock price of Zagrebačka bank compared to the market price using Gordon growth model. Stocks can be seen as pieces of ownership in a company that people can buy or sell on the market. By buying a stock you become a co-owner of the company in a ratio that depends on the amount of shares purchased. The Gordon model was used to estimate the value of stocks based on expected dividends and growth rates, while the Capital Asset Pricing Model (further CAPM) was used to estimate market risk. The results showed that the calculated value was lower than their current market price. The conclusions indicate that stock valuation is a process influenced by various analyzes and other factors in an attempt to obtain the most accurate valuation as possible. The combination of the Gordon model and the CAPM enables a wider analysis taking into account expected returns and market risk. This paper contributes to a better understanding of what shares are, how and in what ways to value them.