Growth and yield modelling

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Growth and yield modelling is a branch of financial management. This method of modelling is also known as the Gordon constant growth model. In this method the cost of equity share capital is found by determining the sum of yield percentage and growth percentage. [1]

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Econometrics is the application of statistical methods to economic data in order to give empirical content to economic relationships. More precisely, it is "the quantitative analysis of actual economic phenomena based on the concurrent development of theory and observation, related by appropriate methods of inference". An introductory economics textbook describes econometrics as allowing economists "to sift through mountains of data to extract simple relationships". The first known use of the term "econometrics" was by Polish economist Paweł Ciompa in 1910. Jan Tinbergen is considered by many to be one of the founding fathers of econometrics. Ragnar Frisch is credited with coining the term in the sense in which it is used today.

Carrying capacity The maximum population size of the species that the environment can support indefinitely

The carrying capacity of an environment is the maximum population size of a biological species that can be sustained by that specific environment, given the food, habitat, water, and other resources available. In population ecology, carrying capacity is defined as the environment's maximal load, which is different from the concept of population equilibrium, which may be far below an environment's carrying capacity. The effect of carrying capacity on population dynamics may be modelled with a logistic function.

In population ecology and economics, maximum sustainable yield (MSY) is theoretically, the largest yield that can be taken from a species' stock over an indefinite period. Fundamental to the notion of sustainable harvest, the concept of MSY aims to maintain the population size at the point of maximum growth rate by harvesting the individuals that would normally be added to the population, allowing the population to continue to be productive indefinitely. Under the assumption of logistic growth, resource limitation does not constrain individuals' reproductive rates when populations are small, but because there are few individuals, the overall yield is small. At intermediate population densities, also represented by half the carrying capacity, individuals are able to breed to their maximum rate. At this point, called the maximum sustainable yield, there is a surplus of individuals that can be harvested because growth of the population is at its maximum point due to the large number of reproducing individuals. Above this point, density dependent factors increasingly limit breeding until the population reaches carrying capacity. At this point, there are no surplus individuals to be harvested and yield drops to zero. The maximum sustainable yield is usually higher than the optimum sustainable yield and maximum economic yield.

Quantitative research All procedures for the numerical representation of empirical facts

Quantitative research is a research strategy that focuses on quantifying the collection and analysis of data. It is formed from a deductive approach where emphasis is placed on the testing of theory, shaped by empiricist and positivist philosophies.

Yield curve

In finance, the yield curve is a curve showing several yields to maturity or interest rates across different contract lengths for a similar debt contract. The curve shows the relation between the interest rate and the time to maturity, known as the "term", of the debt for a given borrower in a given currency.

In financial markets, stock valuation is the method of calculating theoretical values of companies and their stocks. The main use of these methods is to predict future market prices, or more generally, potential market prices, and thus to profit from price movement – stocks that are judged undervalued are bought, while stocks that are judged overvalued are sold, in the expectation that undervalued stocks will overall rise in value, while overvalued stocks will generally decrease in value.

Bond valuation Fair price of a bond

Bond valuation is the determination of the fair price of a bond. As with any security or capital investment, the theoretical fair value of a bond is the present value of the stream of cash flows it is expected to generate. Hence, the value of a bond is obtained by discounting the bond's expected cash flows to the present using an appropriate discount rate.

The following outline is provided as an overview of and topical guide to actuarial science:

Earning yield is the quotient of earnings per share divided by the share price (E/P). It is the reciprocal of the P/E ratio.

The following outline is provided as an overview of and topical guide to finance:

Market share Relative market adoption

Market share is the percentage of a market accounted for by a specific entity.

The income approach is one of three major groups of methodologies, called valuation approaches, used by appraisers. It is particularly common in commercial real estate appraisal and in business appraisal. The fundamental math is similar to the methods used for financial valuation, securities analysis, or bond pricing. However, there are some significant and important modifications when used in real estate or business valuation.

The sustainable yield of natural capital is the ecological yield that can be extracted without reducing the base of capital itself, i.e. the surplus required to maintain ecosystem services at the same or increasing level over time. This yield usually varies over time with the needs of the ecosystem to maintain itself, e.g. a forest that has recently suffered a blight or flooding or fire will require more of its own ecological yield to sustain and re-establish a mature forest. While doing so, the sustainable yield may be much less.

Population dynamics of fisheries

A fishery is an area with an associated fish or aquatic population which is harvested for its commercial or recreational value. Fisheries can be wild or farmed. Population dynamics describes the ways in which a given population grows and shrinks over time, as controlled by birth, death, and migration. It is the basis for understanding changing fishery patterns and issues such as habitat destruction, predation and optimal harvesting rates. The population dynamics of fisheries is used by fisheries scientists to determine sustainable yields.

Material failure theory is the science of predicting the conditions under which solid materials fail under the action of external loads. The failure of a material is usually classified into brittle failure (fracture) or ductile failure (yield). Depending on the conditions most materials can fail in a brittle or ductile manner or both. However, for most practical situations, a material may be classified as either brittle or ductile. Though failure theory has been in development for over 200 years, its level of acceptability is yet to reach that of continuum mechanics.

In finance, the T-model is a formula that states the returns earned by holders of a company's stock in terms of accounting variables obtainable from its financial statements. The T-model connects fundamentals with investment return, allowing an analyst to make projections of financial performance and turn those projections into a required return that can be used in investment selection. Mathematically the model is as follows:

Fish mortality is a parameter used in fisheries population dynamics to account for the loss of fish in a fish stock through death. The mortality can be divided into two types:

Stock assessment

Stock assessments provide fisheries managers with the information that is used in the regulation of a fish stock. Biological and fisheries data are collected in a stock assessment.

The Chepakovich valuation model is a specialized discounted cash flow valuation model, originally designed for the valuation of “growth stocks”, and subsequently applied to the valuation of high-tech companies - even those that are (currently) unprofitable. Relatedly, it is a general valuation model and can also be applied to no-growth or negative growth companies. In fact, in the limiting case of no growth in revenues, the model yields similar results to a regular discounted cash flow to equity model. The model was developed by Alexander Chepakovich in 2000 and enhanced in subsequent years.

Ecocrop was a database used to determine the suitability of a crop for a specified environment. Developed by the Food and Agriculture Organization of the United Nations (FAO) it provided information predicting crop viability in different locations and climatic conditions. It also served as a catalog of plants and plant growth characteristics.

References

  1. Clutter, J.L. (1963), "Compatible growth and yield models for Loblolly pine", Forest Science , 9: 354–371.