The Gordon model allows for the fact that the market might put a price on a stock that's different from what you might estimate using the equation above. A higher stock price than predicted implies a ...

Learn how to calculate the present value of various bond types using Excel, including zero-coupon, annuities, and continuous ...

Learn how to calculate the present value of an annuity. Discover key formulas, understand discount rates, and explore examples for better financial decisions.

A discounted cash flow, or DCF, analysis measures the value of a business or project, such as a new factory for your small business. This value equals the sum of all of the project's future annual ...

Discounting a future cash flow expresses future returns in today's dollars. This allows a fair comparison between initial business expenses and your expected or realized returns. As an example, you ...

When managing projects, every decision you make—especially financial ones—has long-term consequences. One of the most ...

Shareholder value is the return of an investment in a given company. Shareholder value is created when a company's returns exceed its cost of doing business. When a company's management team employs ...

Learn how to calculate the intrinsic value of a stock using Warren Buffett's proven method! Intrinsic value is the foundation of successful investing, helping you determine whether a stock is ...

Here's how to calculate the present value of a perpetual annuity that promises to pay flat or growing annual payments with helpful examples. A perpetual annuity, also called a perpetuity, promises to ...

Lifetime value (LTV) is a significant metric that helps estimate the growth of a company. By comparing LTV to customer acquisition cost, the results can help make crucial decisions. This might include ...