Logo
Unionpedia
Communication
Get it on Google Play
New! Download Unionpedia on your Androidâ„¢ device!
Free
Faster access than browser!
 

Sum of perpetuities method

Index Sum of perpetuities method

The sum of perpetuities method (SPM) is a way of valuing a business assuming that investors discount the future earnings of a firm regardless of whether earnings are paid as dividends or retained. [1]

11 relations: Capital structure, Dividend, Dividend discount model, Dividend policy, Earnings, Interest rate, PEG ratio, Present value, Retained earnings, Return on equity, Stock valuation.

Capital structure

In finance, particularly corporate finance capital structure is the way a corporation finances its assets through some combination of equity, debt, or hybrid securities.

New!!: Sum of perpetuities method and Capital structure · See more »

Dividend

A dividend is a payment made by a corporation to its shareholders, usually as a distribution of profits.

New!!: Sum of perpetuities method and Dividend · See more »

Dividend discount model

The dividend discount model (DDM) is a method of valuing a company's stock price based on the theory that its stock is worth the sum of all of its future dividend payments, discounted back to their present value.

New!!: Sum of perpetuities method and Dividend discount model · See more »

Dividend policy

Dividend policy is concerned with financial policies regarding paying cash dividend in the present or paying an increased dividend at a later stage.

New!!: Sum of perpetuities method and Dividend policy · See more »

Earnings

Earnings are the net benefits of a corporation's operation.

New!!: Sum of perpetuities method and Earnings · See more »

Interest rate

An interest rate is the amount of interest due per period, as a proportion of the amount lent, deposited or borrowed (called the principal sum).

New!!: Sum of perpetuities method and Interest rate · See more »

PEG ratio

The PEG ratio (price/earnings to growth ratio) is a valuation metric for determining the relative trade-off between the price of a stock, the earnings generated per share (EPS), and the company's expected growth.

New!!: Sum of perpetuities method and PEG ratio · See more »

Present value

In economics and finance, present value (PV), also known as present discounted value, is the value of an expected income stream determined as of the date of valuation.

New!!: Sum of perpetuities method and Present value · See more »

Retained earnings

The retained earnings of a corporation is the accumulated net income of the corporation that is retained by the corporation at a particular point of time, such as at the end of the reporting period.

New!!: Sum of perpetuities method and Retained earnings · See more »

Return on equity

In corporate finance, the return on equity (ROE) is a measure of the profitability of a business in relation to the book value of shareholder equity, also known as net assets or assets minus liabilities.

New!!: Sum of perpetuities method and Return on equity · See more »

Stock valuation

In financial markets, stock valuation is the method of calculating theoretical values of companies and their stocks.

New!!: Sum of perpetuities method and Stock valuation · See more »

Redirects here:

Sum of Perpetuities Method.

References

[1] https://en.wikipedia.org/wiki/Sum_of_perpetuities_method

OutgoingIncoming
Hey! We are on Facebook now! »