Anuitas

adalah suatu rangkaian penerimaan atau pembayaran tetap yang dilakukan secara berkala pada
jangka waktu tertentu. Contohnya adalah bunga yang diterima dari obligasi atau dividen tunai
dari suatu saham preferen.

Ada dua jenis anuitas:

1. Anuitas biasa (ordinary) adalah anuitas yang pembayaran atau penerimaannya terjadi
pada akhir periode, serta
2. Anuitas jatuh tempo (due) adalah anuitas yang pembayaran atau penerimaannya
dilakukan di awal periode.

Annuity
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For other uses, see Annuity (disambiguation).

An annuity is a series of payments made at equal intervals.[1] Examples of annuities are regular
deposits to a savings account, monthly home mortgage payments, monthly insurance payments
and pension payments. Annuities can be classified by the frequency of payment dates. The
payments (deposits) may be made weekly, monthly, quarterly, yearly, or at any other regular
interval of time.

Types

Annuities may be classified in several ways.

Timing of payments

Payments of an annuity-immediate are made at the end of payment periods, so that interest
accrues between the issue of the annuity and the first payment. Payments of an annuity-due are
made at the beginning of payment periods, so a payment is made immediately on issue.

Contingency of payments

Annuities that provide payments that will be paid over a period known in advance are annuities
certain or guaranteed annuities. Annuities paid only under certain circumstances are contingent
annuities. A common example is a life annuity, which is paid over the remaining lifetime of the
annuitant. Certain and life annuities are guaranteed to be paid for a number of years and then
become contingent on the annuitant being alive.
Variability of payments

 Fixed annuities – These are annuities with fixed payments. If provided by an insurance
company, the company guarantees a fixed return on the initial investment. Fixed annuities are
not regulated by the Securities and Exchange Commission.
 Variable annuities – Registered products that are regulated by the SEC in the United States of
America. They allow direct investment into various funds that are specially created for Variable
annuities. Typically, the insurance company guarantees a certain death benefit or lifetime
withdrawal benefits.
 Equity-indexed annuities – Annuities with payments linked to an index. Typically, the minimum
payment will be 0% and the maximum will be predetermined. The performance of an index
determines whether the minimum, the maximum or something in between is credited to the
customer.

Deferral of payments

An annuity which begins payments only after a period is a deferred annuity. An annuity which
begins payments without a deferral period is an immediate annuity.

Valuation

of an annuity entails calculation of the present value of the future annuity payments. The
valuation of an annuity entails concepts such as time value of money, interest rate, and future
value.[2]

Annuity-certain[edit]

If the number of payments is known in advance, the annuity is an annuity certain or guaranteed
annuity. Valuation of annuities certain may be calculated using formulas depending on the
timing of payments.

Annuity-immediate[edit]

If the payments are made at the end of the time periods, so that interest is accumulated before the
payment, the annuity is called an annuity-immediate, or ordinary annuity. Mortgage payments
are annuity-immediate, interest is earned before being paid.

↓ ↓ ... ↓ payments

——— ——— ——— ——— —

0 1 2 ... n periods
The present value of an annuity is the value of a stream of payments, discounted by the interest
rate to account for the fact that payments are being made at various moments in the future. The
present value is given in actuarial notation by:

where is the number of terms and is the per period interest rate. Present value is

linear in the amount of payments, therefore the present value for payments, or rent is:

In practice, often loans are stated per annum while interest is compounded and payments are

made monthly. In this case, the interest is stated as a nominal interest rate, and .

The future value of an annuity is the accumulated amount, including payments and interest, of a
stream of payments made to an interest-bearing account. For an annuity-immediate, it is the
value immediately after the n-th payment. The future value is given by:

where is the number of terms and is the per period interest rate. Future value is

linear in the amount of payments, therefore the future value for payments, or rent is:

Example: The present value of a 5-year annuity with nominal annual interest rate 12% and
monthly payments of $100 is:

The rent is understood as either the amount paid at the end of each period in return for an amount
PV borrowed at time zero, the principal of the loan, or the amount paid out by an interest-
bearing account at the end of each period when the amount PV is invested at time zero, and the
account becomes zero with the n-th withdrawal.

Future and present values are related as:

and

Proof of annuity-immediate formula[edit]

To calculate present value, the k-th payment must be discounted to the present by dividing by the
interest, compounded by k terms. Hence the contribution of the k-th payment R would be
R/(1+i)^k. Just considering R to be one, then:

which is the desired result.

Similarly, we can prove the formula for the future value. The payment made at the end of the last
year would accumulate no interest and the payment made at the end of the first year would
accumulate interest for a total of (n−1) years. Therefore,

Annuity-due[edit]

An annuity-due is an annuity whose payments are made at the beginning of each period.[3]
Deposits in savings, rent or lease payments, and insurance premiums are examples of annuities
due.

↓ ↓ ... ↓ payments

——— ——— ——— ——— —

0 1 ... n-1 n periods

Each annuity payment is allowed to compound for one extra period. Thus, the present and future
values of an annuity-due can be calculated through the formula:

and
where are the number of terms, is the per term interest rate, and is the

effective rate of discount given by .

Future and present values for annuities due are related as:

and

Example: The final value of a 7-year annuity-due with nominal annual interest rate 9% and
monthly payments of $100:

Note that in Excel, the PV and FV functions take on optional fifth argument which selects from
annuity-immediate or annuity-due.

An annuity-due with n payments is the sum of one annuity payment now and an ordinary annuity
with one payment less, and also equal, with a time shift, to an ordinary annuity. Thus we have:

(value at the time of the first of n payments of 1)

(value one period after the time of the last of n payments of 1)

Perpetuity[edit]

A perpetuity is an annuity for which the payments continue forever. Since:

even a perpetuity has a finite present value when there is a non-zero discount rate. The formula
for a perpetuity are:
where is the interest rate and is the effective discount rate.

Life annuities[edit]

Valuation of life annuities may be performed by calculating the actuarial present value of the
future life contingent payments. Life tables are used to calculate the probability that the annuitant
lives to each future payment period. Valuation of life annuities also depends on the timing of
payments just as with annuities certain, however life annuities may not be calculated with similar
formulas because actuarial present value accounts for the probability of death at each age.

Amortization calculations[edit]

If an annuity is for repaying a debt P with interest, the amount owed after n payments is:

because the scheme is equivalent with borrowing the amount to create a perpetuity with

coupon , and putting of that borrowed amount in the bank to grow with interest

Also, this can be thought of as the present value of the remaining payments:

See also fixed rate mortgage.

Example calculations[edit]

Formula for Finding the Periodic payment(R), Given A:

R = A/(1+〖(1-(1+((j/m) )〗^(-(n-1))/(j/m))

Examples:

1. Find the periodic payment of an annuity due of $70000, payable annually for 3 years at 15%
compounded annually.
o R = 70000/(1+〖(1-(1+((.15)/1) )〗^(-(3-1))/((.15)/1))
 o R = 70000/2.625708885
o R = $26659.46724
2. Find the periodic payment of an annuity due of $250700, payable quarterly for 8 years at 5%
compounded quarterly.
o R= 250700/(1+〖(1-(1+((.05)/4) )〗^(-(32-1))/((.05)/4))
o R = 250700/26.5692901
o R = $9435.71

Finding the Periodic Payment(R), Given S:

R = S\,/((〖((1+(j/m) )〗^(n+1)-1)/(j/m)-1)

Examples:

1. Find the periodic payment of an accumulated value of $55000, payable monthly for 3 years at
15% compounded monthly.
o R=55000/((〖((1+((.15)/12) )〗^(36+1)-1)/((.15)/12)-1)
o R = 55000/45.67944932
o R = $1204.04
2. Find the periodic payment of an accumulated value of $1600000, payable annually for 3 years at
9% compounded annually.
o R=1600000/((〖((1+((.09)/1) )〗^(3+1)-1)/((.09)/1)-1)
o R = 1600000/3.573129
o R = $447786.80

Valuation (finance)
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Accounting
  Historical cost
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Major types

 Auditing
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 Fund
 Governmental
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Key concepts

 Accounting period
 Accrual
 Constant purchasing power
 Economic entity
 Fair value
 Going concern
 Historical cost
 Matching principle
 Materiality
 Revenue recognition
 Unit of account

Selected accounts

 Assets
 Cash
 Cost of goods sold
 Depreciation / Amortization
 Equity
  Expenses
 Goodwill
 Liabilities
 Profit
 Revenue

Accounting standards

 Generally-accepted principles
 Generally-accepted auditing standards
 Convergence
 International Financial Reporting Standards
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Financial statements

 Annual report
 Balance sheet
 Cash-flow
 Equity
 Income
 Management discussion
 Notes to the financial statements

Bookkeeping

 Bank reconciliation
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 FIFO and LIFO
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 T accounts
 Trial balance

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  Financial
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Business portal

 v
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 e

In finance, valuation is the process of determining the present value (PV) of an asset. Valuations
can be done on assets (for example, investments in marketable securities such as stocks, options,
business enterprises, or intangible assets such as patents and trademarks) or on liabilities (e.g.,
bonds issued by a company). Valuations are needed for many reasons such as investment
analysis, capital budgeting, merger and acquisition transactions, financial reporting, taxable
events to determine the proper tax liability, and in litigation.[1]

Contents

 1 Valuation overview
 2 Business valuation
o 2.1 Discounted cash flow method
o 2.2 Guideline companies method
o 2.3 Net asset value method
  3 Usage
 4 Valuation of a suffering company
 5 Valuation of a startup company
 6 Valuation of intangible assets
 7 Valuation of mining projects
 8 Asset pricing models
 9 See also
 10 References

Valuation overview[edit]

Valuation of financial assets is done using one or more of these types of models:

1. Absolute value models that determine the present value of an asset's expected future cash
flows. These kinds of models take two general forms: multi-period models such as discounted
cash flow models or single-period models such as the Gordon model. These models rely on
mathematics rather than price observation.
2. Relative value models determine value based on the observation of market prices of similar
assets.
3. Option pricing models are used for certain types of financial assets (e.g., warrants, put options,
call options, employee stock options, investments with embedded options such as a callable
bond) and are a complex present value model. The most common option pricing models are the
Black–Scholes-Merton models and lattice models.

Common terms for the value of an asset or liability are market value, fair value, and intrinsic
value. The meanings of these terms differ. For instance, when an analyst believes a stock's
intrinsic value is greater (less) than its market price, an analyst makes a "buy" ("sell")
recommendation. Moreover, an asset's intrinsic value may be subject to personal opinion and
vary among analysts.

The International Valuation Standards include definitions for common bases of value and
generally accepted practice procedures for valuing assets of all types.

Business valuation[edit]

Businesses or fractional interests in businesses may be valued for various purposes such as
mergers and acquisitions, sale of securities, and taxable events. An accurate valuation of
privately owned companies largely depends on the reliability of the firm's historic financial
information. Public company financial statements are audited by Certified Public Accountants
(USA), Chartered Certified Accountants (ACCA) or Chartered Accountants (UK and Canada)
and overseen by a government regulator. Alternatively, private firms do not have government
oversight—unless operating in a regulated industry—and are usually not required to have their
financial statements audited. Moreover, managers of private firms often prepare their financial
statements to minimize profits and, therefore, taxes. Alternatively, managers of public firms tend
to want higher profits to increase their stock price. Therefore, a firm's historic financial
information may not be accurate and can lead to over- and undervaluation. In an acquisition, a
buyer often performs due diligence to verify the seller's information.

Financial statements prepared in accordance with generally accepted accounting principles

(GAAP) show many assets based on their historic costs rather than at their current market values.
For instance, a firm's balance sheet will usually show the value of land it owns at what the firm
paid for it rather than at its current market value. But under GAAP requirements, a firm must
show the fair values (which usually approximates market value) of some types of assets such as
financial instruments that are held for sale rather than at their original cost. When a firm is
required to show some of its assets at fair value, some call this process "mark-to-market". But
reporting asset values on financial statements at fair values gives managers ample opportunity to
slant asset values upward to artificially increase profits and their stock prices. Managers may be
motivated to alter earnings upward so they can earn bonuses. Despite the risk of manager bias,
equity investors and creditors prefer to know the market values of a firm's assets—rather than
their historical costs—because current values give them better information to make decisions.

There are commonly three pillars to valuing business entities: comparable company analyses,
discounted cash flow analysis, and precedent transaction analysis.

Discounted cash flow method[edit]

Main article: Valuation using discounted cash flows

This method estimates the value of an asset based on its expected future cash flows, which are
discounted to the present (i.e., the present value). This concept of discounting future money is
commonly known as the time value of money. For instance, an asset that matures and pays $1 in
one year is worth less than $1 today. The size of the discount is based on an opportunity cost of
capital and it is expressed as a percentage or discount rate.

In finance theory, the amount of the opportunity cost is based on a relation between the risk and
return of some sort of investment. Classic economic theory maintains that people are rational and
averse to risk. They, therefore, need an incentive to accept risk. The incentive in finance comes
in the form of higher expected returns after buying a risky asset. In other words, the more risky
the investment, the more return investors want from that investment. Using the same example as
above, assume the first investment opportunity is a government bond that will pay interest of 5%
per year and the principal and interest payments are guaranteed by the government.
Alternatively, the second investment opportunity is a bond issued by small company and that
bond also pays annual interest of 5%. If given a choice between the two bonds, virtually all
investors would buy the government bond rather than the small-firm bond because the first is
less risky while paying the same interest rate as the riskier second bond. In this case, an investor
has no incentive to buy the riskier second bond. Furthermore, in order to attract capital from
investors, the small firm issuing the second bond must pay an interest rate higher than 5% that
the government bond pays. Otherwise, no investor is likely to buy that bond and, therefore, the
firm will be unable to raise capital. But by offering to pay an interest rate more than 5% the firm
gives investors an incentive to buy a riskier bond.
For a valuation using the discounted cash flow method, one first estimates the future cash flows
from the investment and then estimates a reasonable discount rate after considering the riskiness
of those cash flows and interest rates in the capital markets. Next, one makes a calculation to
compute the present value of the future cash flows.

Guideline companies method[edit]

Main article: Comparable company analysis

This method determines the value of a firm by observing the prices of similar companies (called
"guideline companies") that sold in the market. Those sales could be shares of stock or sales of
entire firms. The observed prices serve as valuation benchmarks. From the prices, one calculates
price multiples such as the price-to-earnings or price-to-book ratios—one or more of which used
to value the firm. For example, the average price-to-earnings multiple of the guideline companies
is applied to the subject firm's earnings to estimate its value.

Many price multiples can be calculated. Most are based on a financial statement element such as
a firm's earnings (price-to-earnings) or book value (price-to-book value) but multiples can be
based on other factors such as price-per-subscriber.

Net asset value method[edit]

The third-most common method of estimating the value of a company looks to the assets and
liabilities of the business. At a minimum, a solvent company could shut down operations, sell off
the assets, and pay the creditors. Any cash that would remain establishes a floor value for the
company. This method is known as the net asset value or cost method. In general the discounted
cash flows of a well-performing company exceed this floor value. Some companies, however,
are worth more "dead than alive", like weakly performing companies that own many tangible
assets. This method can also be used to value heterogeneous portfolios of investments, as well as
nonprofits, for which discounted cash flow analysis is not relevant. The valuation premise
normally used is that of an orderly liquidation of the assets, although some valuation scenarios
(e.g., purchase price allocation) imply an "in-use" valuation such as depreciated replacement cost
new.

An alternative approach to the net asset value method is the excess earnings method. This
method was first described in ARM34,[further explanation needed] and later refined by the U.S. Internal
Revenue Service's Revenue Ruling 68-609. The excess earnings method has the appraiser
identify the value of tangible assets, estimate an appropriate return on those tangible assets, and
subtract that return from the total return for the business, leaving the "excess" return, which is
presumed to come from the intangible assets. An appropriate capitalization rate is applied to the
excess return, resulting in the value of those intangible assets. That value is added to the value of
the tangible assets and any non-operating assets, and the total is the value estimate for the
business as a whole.
Usage[edit]

In finance, valuation analysis is required for many reasons including tax assessment, wills and
estates, divorce settlements, business analysis, and basic bookkeeping and accounting. Since the
value of things fluctuates over time, valuations are as of a specific date like the end of the
accounting quarter or year. They may alternatively be mark-to-market estimates of the current
value of assets or liabilities as of this minute or this day for the purposes of managing portfolios
and associated financial risk (for example, within large financial firms including investment
banks and stockbrokers).

Some balance sheet items are much easier to value than others. Publicly traded stocks and bonds
have prices that are quoted frequently and readily available. Other assets are harder to value. For
instance, private firms that have no frequently quoted price. Additionally, financial instruments
that have prices that are partly dependent on theoretical models of one kind or another are
difficult to value. For example, options are generally valued using the Black–Scholes model
while the liabilities of life assurance firms are valued using the theory of present value.
Intangible business assets, like goodwill and intellectual property, are open to a wide range of
value interpretations.

It is possible and conventional for financial professionals to make their own estimates of the
valuations of assets or liabilities that they are interested in. Their calculations are of various
kinds including analyses of companies that focus on price-to-book, price-to-earnings, price-to-
cash-flow and present value calculations, and analyses of bonds that focus on credit ratings,
assessments of default risk, risk premia, and levels of real interest rates. All of these approaches
may be thought of as creating estimates of value that compete for credibility with the prevailing
share or bond prices, where applicable, and may or may not result in buying or selling by market
participants. Where the valuation is for the purpose of a merger or acquisition the respective
businesses make available further detailed financial information, usually on the completion of a
non-disclosure agreement.

It is important to note that valuation requires judgment and assumptions:

 There are different circumstances and purposes to value an asset (e.g., distressed firm, tax
purposes, mergers and acquisitions, financial reporting). Such differences can lead to different
valuation methods or different interpretations of the method results
 All valuation models and methods have limitations (e.g., degree of complexity, relevance of
observations, mathematical form)
 Model inputs can vary significantly because of necessary judgment and differing assumptions

Users of valuations benefit when key information, assumptions, and limitations are disclosed to
them. Then they can weigh the degree of reliability of the result and make their decision.

Valuation of a suffering company[edit]

Additional adjustments to a valuation approach, whether it is market-, income-, or asset-based,

may be necessary in some instances like:
  Excess or restricted cash
 Other non-operating assets and liabilities
 Lack of marketability discount of shares
 Control premium or lack of control discount
 Above- or below-market leases
 Excess salaries in the case of private companies

There are other adjustments to the financial statements that have to be made when valuing a
distressed company. Andrew Miller identifies typical adjustments used to recast the financial
statements that include:

 Working capital adjustment

 Deferred capital expenditures
 Cost of goods sold adjustment
 Non-recurring professional fees and costs
 Certain non-operating income/expense items [2]

Valuation of a startup company[edit]

Startup companies such as Uber, which was valued at $50 billion in early 2015, have a valuation
based on what investors, for the most part venture capital firms, are willing to pay for a share of
the firm. They are not listed on any stock market, nor is the valuation based on their assets or
profits, but on their potential for success, growth, and eventually, possible profits.[3] Many startup
companies use internal growth factors to show their potential growth which may attribute to their
valuation. The professional investors who fund startups are experts, but hardly infallible, see
Dot-com bubble.[4]

Valuation of intangible assets[edit]

Valuation models can be used to value intangible assets such as for patent valuation, but also in
copyrights, software, trade secrets, and customer relationships. Since few sales of benchmark
intangible assets can ever be observed, one often values these sorts of assets using either a
present value model or estimating the costs to recreate it. Regardless of the method, the process
is often time-consuming and costly.

Valuations of intangible assets are often necessary for financial reporting and intellectual
property transactions.

Stock markets give indirectly an estimate of a corporation's intangible asset value. It can be
reckoned as the difference between its market capitalisation and its book value (by including
only hard assets in it).

Valuation of mining projects[edit]

In mining, valuation is the process of determining the value or worth of a mining property.
Mining valuations are sometimes required for IPOs, fairness opinions, litigation, mergers and
acquisitions, and shareholder-related matters. In valuation of a mining project or mining
property, fair market value is the standard of value to be used.

The CIMVal Standards ("Canadian Institute of Mining, Metallurgy and Petroleum on Valuation
of Mineral Properties") are a recognised standard for valuation of mining projects and is also
recognised by the Toronto Stock Exchange. The standards [5] stress the use of the cost approach,
market approach, and the income approach, depending on the stage of development of the
mining property or project.

Depending on context, Real options valuation techniques are also sometimes employed; for
further discussion here see Business valuation: Option pricing approaches, Corporate finance:
Valuing flexibility, as well as Mineral economics in general.

Asset pricing models[edit]

See also Modern portfolio theory

 Capital asset pricing model

 Arbitrage pricing theory
 Black–Scholes (for options)
 Fuzzy pay-off method for real option valuation
 Single-index model
 Markov switching multifractal
 Multiple factor models