In a previous article I have described what perpetuity is and how we can derive the formula for the present value of perpetuity. In this article I describe how it can be used in combination with the discounted value of cash flows model.

# Month: August 2018

## Deriving The Perpetuity Formula

Perpetuity refers to an infinite amount of time (). In finance, perpetuity is a constant stream of identical cash flows, (), with no end.

## Find Cointegrating Pairs To Trade

In this research I am going to search for cointegrating security pairs that can potentially be used in a pair trading strategy. I am going to fetch the data from the NASDAQ official web site.

## Warren Buffett’s Intrinsic Value Calculator

In this post I will summarize how one can compute the intrinsic value of a company according to the below quote from Warren Buffet: “Intrinsic value can be defined simply: It is the discounted value of the cash that can be taken out of a business during its remaining life.”

## How to Compute the Compound Annual Growth Rate

We know that the compound annual growth rate (CAGR) is the mean annual growth rate of an investment over a specified period of time longer than one year.