Finance:Holding value
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Revision as of 07:54, 5 May 2022 by imported>Carolyn (update)
In the field of financial economics, Holding value is an indicator of a theoretical value of an asset that someone has in their portfolio. It is a value which sums the impacts of all the dividends that would be given to the holder in the future, to help them estimate a price to buy or sell assets.[1]
Expression
The following formula gives the holding value (HV) for a period beginning at i through the period n.
- [math]\displaystyle{ {HV}_{[i,n]}=\sum_{k=0}^{n-i}\frac{div(i+k)}{{(1+r)}^{n-i-k}} }[/math] where
div = dividend
r = interest rate (of the money if it is kept at the bank; e.g., 0.02 or 2%)
i = the period at the beginning of the estimation
n = the last period considered in the window of future dividends.
References
- ↑ "Holding Value". http://www.investorwords.com/15432/holding_value.html. Retrieved 20 June 2018.
![]() | Original source: https://en.wikipedia.org/wiki/Holding value.
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