Holding value

Holding value

Holding value is an indicator of a theoretical value of the asset that someone has in his portfolio. It is a value which sums the impacts of all the dividends that would be given to players in the future, to help them to estimate a price to buy or sell assets. This information is given to players at the beginning of the each period.

Expression

The following formula gives the holding value (HV) for an outlook from the period i to the period n.

div = dividend

r = interest rate (of the money if it is kept at the bank e.g. 0,02)

i = the period at the beginning of the estimation

n = the last period considered in the window of the future dividends


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