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The Marshall-Edgeworth index, credited to Marshall (1887) and Edgeworth (1925), is a weighted relative of current period to base period sets of prices. This index uses the arithmetic average of the current and based period quantities for weighting. It is considered a pseudo-superlative formula and is symmetric.
Volume–price trend (VPT) (sometimes price–volume trend) is a technical analysis indicator intended to relate price and volume in the stock market.VPT is based on a running cumulative volume that adds or subtracts a multiple of the percentage change in share price trend and current volume, depending upon the investment's upward or downward movements.
In finance, the binomial options pricing model ( BOPM) provides a generalizable numerical method for the valuation of options. Essentially, the model uses a "discrete-time" ( lattice based) model of the varying price over time of the underlying financial instrument, addressing cases where the closed-form Black–Scholes formula is wanting.
The cyclically adjusted price-to-earnings ratio, commonly known as CAPE, [1] Shiller P/E, or P/E 10 ratio, [2] is a stock valuation measure usually applied to the US S&P 500 equity market. It is defined as price divided by the average of ten years of earnings ( moving average ), adjusted for inflation. [3] As such, it is principally used to ...
In financial economics, the dividend discount model ( DDM) is a method of valuing the price of a company's capital stock or business value based on the fact that their corresponding value is worth the sum of all of its future dividend payments, discounted back to their present value. [1] In other words, DDM is used to value stocks based on the ...
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 (with respect to their theoretical value) are bought, while stocks that are judged overvalued are sold, in the ...
Valuation using multiples. In economics, valuation using multiples, or "relative valuation", is a process that consists of: identifying comparable assets (the peer group) and obtaining market values for these assets. converting these market values into standardized values relative to a key statistic, since the absolute prices cannot be compared.
The NASDAQ spiked during the dot-com bubble in the late 1990s, a result of the large number of technology companies on that index. In finance, a stock index, or stock market index, is an index that measures the performance of a stock market, or of a subset of a stock market. It helps investors compare current stock price levels with past prices ...