ddm_sim: Monte Carlo Simulation for the dividend discount model...

In maximilian-muecke/firmValueSim: A Simulation Approach for Company Valuations

Monte Carlo Simulation for the dividend discount model (Gordon Growth model)

Description

Monte Carlo Simulation for the dividend discount model (Gordon Growth model)

Usage

ddm_sim(
  d,
  r,
  g_mu = NULL,
  g_sigma = NULL,
  g_min = NULL,
  g_max = NULL,
  n_sim = 1000,
  seed = NULL,
  distribution = c("normal", "triangle", "uniform")
)

Arguments

d	Numeric. Estimated value of dividend in the next year.
r	Numeric. Constant cost of equity.
g_mu	Numeric. The mean of the normal distribution.
g_sigma	Numeric. The standard deviation of the normal distribution.
g_min	Numeric. Lower limit of the distribution.
g_max	Numeric. Upper limit of the distribution.
n_sim	Numeric. The number of simulations.
seed	Numeric. State for random number generation.
distribution	Character. The type of distribution.

Value

A numeric vector with the current simulated stock prices.

Examples

stock_prices <- ddm_sim(1.5, 0.05, g_mu = 0.03, g_sigma = 0.01)

maximilian-muecke/firmValueSim documentation built on Oct. 2, 2022, 5:40 p.m.