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".
Theory of computationIn theoretical computer science and mathematics, the theory of computation is the branch that deals with what problems can be solved on a model of computation, using an algorithm, how efficiently they can be solved or to what degree (e.g., approximate solutions versus precise ones). The field is divided into three major branches: automata theory and formal languages, computability theory, and computational complexity theory, which are linked by the question: "What are the fundamental capabilities and limitations of computers?".
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.
Function problemIn computational complexity theory, a function problem is a computational problem where a single output (of a total function) is expected for every input, but the output is more complex than that of a decision problem. For function problems, the output is not simply 'yes' or 'no'. A functional problem is defined by a relation over strings of an arbitrary alphabet : An algorithm solves if for every input such that there exists a satisfying , the algorithm produces one such , and if there are no such , it rejects.
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.
Classical languageA classical language is any language with an independent literary tradition and a large and ancient body of written literature. Classical languages are typically dead languages, or show a high degree of diglossia, as the spoken varieties of the language diverge further away from the classical written language over time. Classics In the context of traditional European classical studies, the "classical languages" refer to Greek and Latin, which were the literary languages of the Mediterranean world in classical antiquity.
Time value of moneyThe time value of money is the widely accepted conjecture that there is greater benefit to receiving a sum of money now rather than an identical sum later. It may be seen as an implication of the later-developed concept of time preference. The time value of money is among the factors considered when weighing the opportunity costs of spending rather than saving or investing money. As such, it is among the reasons why interest is paid or earned: interest, whether it is on a bank deposit or debt, compensates the depositor or lender for the loss of their use of their money.
Present valueIn economics and finance, present value (PV), also known as present discounted value, is the value of an expected income stream determined as of the date of valuation. The present value is usually less than the future value because money has interest-earning potential, a characteristic referred to as the time value of money, except during times of zero- or negative interest rates, when the present value will be equal or more than the future value. Time value can be described with the simplified phrase, "A dollar today is worth more than a dollar tomorrow".
Syntactic monoidIn mathematics and computer science, the syntactic monoid of a formal language is the smallest monoid that recognizes the language . The free monoid on a given set is the monoid whose elements are all the strings of zero or more elements from that set, with string concatenation as the monoid operation and the empty string as the identity element. Given a subset of a free monoid , one may define sets that consist of formal left or right inverses of elements in .
SimulationA simulation is the imitation of the operation of a real-world process or system over time. Simulations require the use of models; the model represents the key characteristics or behaviors of the selected system or process, whereas the simulation represents the evolution of the model over time. Often, computers are used to execute the simulation. Simulation is used in many contexts, such as simulation of technology for performance tuning or optimizing, safety engineering, testing, training, education, and video games.
