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.