Perpetuity factor

Financial maths.

(PF).

A perpetuity factor is the fraction 1/r, used when evaluating a fixed perpetuity.

Using this simple formula assumes a constant periodic cost of capital (r) for all periods from now to infinity.

Sometimes known as the Perpetuity formula.

See also

• Annuity factor
• Capitalisation factor
• Discount factor
• Discounted cash flow
• Dividend growth model
• Growing perpetuity factor
• Perpetuity