GREY:ATBPF - Post by User
Comment by
Actuarialon Mar 26, 2018 4:41pm
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Post# 27784407
RE:Someone
RE:Someone
SP is basically probability * discounted future cash flow. Usually, it was discounted with higher discount rate, for example, Zack use 50% for probability and 18% for discount rate. And, therefore, if you hold, you would receive all the undiscounted cash flow kind of be equivalent to you sell the stock and invest it somewhere else which can generate 18% return.