Editing Time value of money (section)

===Present value of a growing perpetuity===
When the perpetual annuity payment grows at a fixed rate (''g'', with ''g'' < ''i'') the value is determined according to the following formula, obtained by setting ''n'' to infinity in the earlier formula for a growing perpetuity:

:<math>PV(A)\,=\,{A \over i-g}</math>

In practice, there are few securities with precise characteristics, and the application of this valuation approach is subject to various qualifications and modifications. Most importantly, it is rare to find a growing perpetual annuity with fixed rates of growth and true perpetual cash flow generation. Despite these qualifications, the general approach may be used in valuations of real estate, equities, and other assets.

This is the well known [[Gordon model|Gordon growth model]] used for [[stock valuation]].