释义 |
security valuation model Security Valuation ModelAny model used to estimate the appropriate price of a security. This helps investors make investment decisions on which securities are undervalued and are therefore good to buy and likewise, which are overvalued and good to sell. All security valuation models use a series of mathematical relationships to make their determinations. As with all things, some models are more accurate than others.security valuation model An analytic tool for valuing securities in which a series of mathematical relationships is used to determine the price at which a security should sell. Accuracy using a model depends not only on the validity of the relationships, but also on the precision of the estimates of other variables required by the model. One widely used security valuation model discounts estimated cash flows, such as dividends or interest, from holding an investment. |