Valuation using discounted cash flowsValuation using discounted cash flows (DCF valuation) is a method of estimating the current value of a company based on projected future cash flows adjusted for the time value of money. The cash flows are made up of those within the “explicit” forecast period, together with a continuing or terminal value that represents the cash flow stream after the forecast period. In several contexts, DCF valuation is referred to as the "income approach".
Dividend discount modelIn finance and investing, the dividend discount model (DDM) is a method of valuing the price of a company's stock based on the fact that its stock is worth the sum of all of its future dividend payments, discounted back to their present value. In other words, DDM is used to value stocks based on the net present value of the future dividends. The constant-growth form of the DDM is sometimes referred to as the Gordon growth model (GGM), after Myron J.
WordA word is a basic element of language that carries an objective or practical meaning, can be used on its own, and is uninterruptible. Despite the fact that language speakers often have an intuitive grasp of what a word is, there is no consensus among linguists on its definition and numerous attempts to find specific criteria of the concept remain controversial. Different standards have been proposed, depending on the theoretical background and descriptive context; these do not converge on a single definition.
Hyperreal numberIn mathematics, the system of hyperreal numbers is a way of treating infinite and infinitesimal (infinitely small but non-zero) quantities. The hyperreals, or nonstandard reals, *R, are an extension of the real numbers R that contains numbers greater than anything of the form (for any finite number of terms). Such numbers are infinite, and their reciprocals are infinitesimals. The term "hyper-real" was introduced by Edwin Hewitt in 1948. The hyperreal numbers satisfy the transfer principle, a rigorous version of Leibniz's heuristic law of continuity.
Definable real numberInformally, a definable real number is a real number that can be uniquely specified by its description. The description may be expressed as a construction or as a formula of a formal language. For example, the positive square root of 2, , can be defined as the unique positive solution to the equation , and it can be constructed with a compass and straightedge. Different choices of a formal language or its interpretation give rise to different notions of definability.
Number lineIn elementary mathematics, a number line is a picture of a graduated straight line that serves as visual representation of the real numbers. Every point of a number line is assumed to correspond to a real number, and every real number to a point. The integers are often shown as specially-marked points evenly spaced on the line. Although the image only shows the integers from –3 to 3, the line includes all real numbers, continuing forever in each direction, and also numbers that are between the integers.
Net present valueThe net present value (NPV) or net present worth (NPW) applies to a series of cash flows occurring at different times. The present value of a cash flow depends on the interval of time between now and the cash flow. It also depends on the discount rate. NPV accounts for the time value of money. It provides a method for evaluating and comparing capital projects or financial products with cash flows spread over time, as in loans, investments, payouts from insurance contracts plus many other applications.
Closure operatorIn mathematics, a closure operator on a set S is a function from the power set of S to itself that satisfies the following conditions for all sets {| border="0" |- | | (cl is extensive), |- | | (cl is increasing), |- | | (cl is idempotent). |} Closure operators are determined by their closed sets, i.e., by the sets of the form cl(X), since the closure cl(X) of a set X is the smallest closed set containing X. Such families of "closed sets" are sometimes called closure systems or "Moore families".
Closure (mathematics)In mathematics, a subset of a given set is closed under an operation of the larger set if performing that operation on members of the subset always produces a member of that subset. For example, the natural numbers are closed under addition, but not under subtraction: 1 − 2 is not a natural number, although both 1 and 2 are. Similarly, a subset is said to be closed under a collection of operations if it is closed under each of the operations individually. The closure of a subset is the result of a closure operator applied to the subset.
Transitive closureIn mathematics, the transitive closure R^+ of a homogeneous binary relation R on a set X is the smallest relation on X that contains R and is transitive. For finite sets, "smallest" can be taken in its usual sense, of having the fewest related pairs; for infinite sets R^+ is the unique minimal transitive superset of R. For example, if X is a set of airports and x R y means "there is a direct flight from airport x to airport y" (for x and y in X), then the transitive closure of R on X is the relation R^+ such that x R^+ y means "it is possible to fly from x to y in one or more flights".
