Valuing Common Stocks
Present Value of Growth Opportunities (PVGO)
- Net present value of a firm’s future
investments.
Sustainable Growth Rate - Steady rate at which
a firm can grow: plowback ratio X return on
equity.
Valuing Common Stocks
Present Value of Growth Opportunities (PVGO)
Sustainable Growth Rate - Steady rate at which
a firm can grow: plowback ratio X return on
equity.