| singleStageR {stockAnalyst} | R Documentation |
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, 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
singleStageR(ROErate=0.16, bgnBVPS=18.81,r=0.11,g=0.08)