The Gordon Growth Model (GGM) is a version of the dividend discount model (DDM).It is used to calculate the intrinsic value of a stock based on the net present value (NPV) of its future dividends.
Market value refers to the current price of an asset, market-traded security, or company.More simply, it’s used to describe the value of these on the market. Market value may also be referred to as open market valuation. An asset’s market value is determined by fluctuations in supply and demand.
Opportunity cost is the return on an investment/opportunity you missed out on, compared to the return on the investment that you chose.To determine what was lost (or gained), opportunity cost may be calculated as a number or a ratio.
Present value (PV) measures the current value of an amount of money – or a stream of cash flows – that is expected in the future.This value will differ from the cash flows’ nominal value, since time itself affects value.
ROI (or return on investment) measures the gain/loss generated by an investment in relation to its initial cost.ROI allows the reader to gauge the efficiency and profitability of an investment and is often used to influence financial decisions, compare a company’s profitability, and analyze investments.