Home / Sustainable Investing / Stock Valuation Stock Valuation Carbon Collective March 24, 2021 Crossover Rate Crossover rate is the cost of capital where two projects have the same net present values (NPV) or where their NPV profiles intersect. Terminal Value (TV) Terminal value (TV) is used to estimate the value of a project beyond the forecast period of future cash flows. Preferred Stock Valuation Preferred stock is an equity procedure that can be used by any company that wants to fund project expansion. Gordon Growth Model The Gordon Growth Model (GGM) helps an investor to determine the intrinsic value of a stock based on the constant rate of growth of its future dividends. Risk Premium A risk premium is a return on investment above the risk-free rate that an investor needs to be compensated for investing in higher-risk investments.