Valuation

  • 11 Posts
  • 1 Sections
  • 1 Types
Abnormal Obsolescence
Accounting Valuation
An unexpected loss of asset value caused by a technology, regulatory, or demand shock that shortens useful life.
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Annuity Factor
Economics Valuation
The present value of a stream of equal payments and the key bridge between a lump sum and periodic income.
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Annuity Rate
Economics Valuation
The payout rate that turns a premium or lump sum into periodic annuity income.
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Arbitrage Pricing Theory
Investments Valuation
A multi-factor asset pricing framework where no-arbitrage implies expected returns are linear in factor exposures.
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Arrow-Debreu State Price
Valuation Economics
The current price of one unit of payoff delivered in one specific future state.
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Asset Prices
Investments Valuation
The market value of claims on future payoffs, shaped by expected cash flows, discount rates, and risk premia.
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Binomial Pricing
Investments Valuation
Binomial pricing values an option by letting the underlying asset move up or down step by step and ruling out arbitrage.
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Black-Scholes Equation
Investments Valuation
The Black-Scholes equation is the no-arbitrage differential equation used to value options in continuous time under standard assumptions.
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Book Value
Accounting Valuation
Book value is the accounting value recorded on the balance sheet, often measured for a firm as assets minus liabilities.
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Capital Asset Pricing Model (CAPM)
Investments Valuation
A model that links an asset's expected return to its market beta and the market risk premium.
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Rate of Return
Investments Valuation
The percentage change in value of an investment over a period, including income and price changes.
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