Holding value


Holding value is an indicator of a theoretical value of an asset that someone has in his/her portfolio. It is a value which sums the impacts of all the dividends that would be given to the holder in the future, to help them estimate a price to buy or sell assets.

Expression

The following formula gives the holding value for a period beginning at i through the period n.
div = dividend
r = interest rate
i = the period at the beginning of the estimation
n = the last period considered in the window of future dividends.