Holding value

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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.

[edit] Expression

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

Image:HoldingvalueFormula.png

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