A perpetuity is an annuity that offers a constant stream of cash flows. Finding the present value of perpetuities is very simple in terms of mathematics—it is equal to the fixed periodic cash flow PMT, divided by the respective interest rate r. The concept of perpetuity deals extensively with valuing stocks, real estate, and other investment opportunities.
This open-access Excel template is a useful tool for bankers, investment professionals, corporate finance practitioners, and portfolio managers.
Present Value of Perpetuity is among the topics included in the Quantitative Methods module of the CFA Level 1 Curriculum. Gain valuable insights into the subject with our Math for Finance course.
You can also explore other related templates such as—Present Value of Annuity Due, Future Value of Annuity, and Present Value of Annuity.
