What is a 'Target Return'
A target return is a pricing model that prices a business based on what an investor would want to make from any capital invested in the company. Target return is calculated as the money invested in a venture plus the profit that the investor wants to see in return, adjusted for the time value of money. As a return on investment method, target return pricing requires an investor to work backwards to reach a current price.
BREAKING DOWN 'Target Return'
One of the major difficulties in using this pricing method is that an investor must pick both a return that can be reasonably attained, as well as a time period in which the target return can be reached. Picking a high return and a short time period means that the venture has to be much more profitable in the shortrun than if the investor expected a lower return over the same period, or the same return over a longer period.

Return
The gain or loss of a security in a particular period. The return ... 
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Intraday Return
One of the two components of the total daily return generated ... 
InflationAdjusted Return
A measure of return that accounts for the return period's inflation ... 
Real Rate Of Return
The annual percentage return realized on an investment, which ... 
Relative Return
The return that an asset achieves over a period of time compared ...

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A real rate of return is an annual percentage investment return thatâ€™s adjusted for inflation, taxes or other factors. 
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How does the required rate of return affect the price of a stock, in terms of the ...
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What's the difference between absolute and relative return?
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What are some of the limitations of only looking at the rate of return for an investment?
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