shareValueRImultiStageEPS {stockAnalyst} | R Documentation |
Calculates value of a share based on EPS growth under the Multistage Residual Income Valuation.
Description
Calculates value of a share based on EPS growth under the Multistage Residual Income Valuation.
Usage
shareValueRImultiStageEPS(bgnBVPS, EPS, r, times, prem, n)
Arguments
bgnBVPS |
A number vector. |
EPS |
A number vector. |
r |
A number. |
times |
A number vector. |
prem |
A number. |
n |
A number. |
Details
The method shareValueRImultiStageEPS
is developed to compute share value based on EPS growth under the Multistage Residual Income Valuation for the values passed to its six arguments. Here, bgnBVPS
is beginning Book Value Per Share, EPS
is Earnings Per Share, r
is required rate of return on equity , times
is a vector of number of years ranging from 1 to any specified number of years Residual Income Values are to be computed, premium
certain premium over book value, n
in one finite-horizon model of residual income valuation which assumes that at the end of time horizon n
, a certain premium over book value exists for the company.
Value
Input values to six arguments bgnBVPS
EPS
, r
, times
, prem
and n
.
Author(s)
MaheshP Kumar, maheshparamjitkumar@gmail.com
References
Pinto, J. E. (2020). Equity Asset Valuation (4th ed.). Wiley Professional Development (P&T). https://bookshelf.vitalsource.com/books/9781119628194
Examples
shareValueRImultiStageEPS(bgnBVPS=c(6,7,8.25),EPS=c(2,2.5,4),r=0.10, times=c(1,2,3),prem=1.1,n=3)