singleStageR: Calculates value of a share based on single-stage...

In stockAnalyst: Equity Valuation using Methods of Fundamental Analysis

Calculates value of a share based on single-stage (constant-growth) Residual Income model.

Description

The single-stage (constant-growth) residual income model assumes that a company has a constant return on equity and constant earnings growth rate through time.

Usage

singleStageR(ROErate, bgnBVPS, r, g)

Arguments

ROErate	A number.
bgnBVPS	A number.
r	A number.
g	A number.

Details

According to information provided by Jerald E. Pinto (2020), the method singleStageR is developed to compute value of a share based on single-stage (constant-growth) residual income model for the values passed to its four arguments. Here, ROErate is rate of Return on Equity, g is constant rate of growth under single stage constant growth model, bgnBVPS is beginning Book Value per Share, r is required rate of return on equity.

Value

Input values to four arguments bgnBVPS RI, r,and g.

Author(s)

MaheshP Kumar, [e-mail]

References

Pinto, J. E. (2020). Equity Asset Valuation (4th ed.). Wiley Professional Development (P&T). https://bookshelf.vitalsource.com/books/9781119628194

Examples

singleStageR(ROErate=0.16, bgnBVPS=18.81,r=0.11,g=0.08)

stockAnalyst documentation built on Sept. 13, 2022, 5:07 p.m.