Target Return

Filed Under » , , ,
Dictionary Says

Definition of 'Target Return'

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.
Investopedia Says

Investopedia explains '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 short-run than if the investor expected a lower return over the same period, or the same return over a longer period.

Search results for

'Target Return'

  • 5 Ways To Rate Your Portfolio Manager

    http://www.investopedia.com/articles/stocks/11/5-ways-to-measure-money-managers.asp
    ... Rather than comparing portfolio returns to the risk-free rate, the portfolio's
    performance is compared to a target return. The investor ...

  • Target Strategies Often Miss The Mark

    http://www.investopedia.com/articles/retirement/09/target-date-target-risk-strategies.asp
    ... What could be nicer? (Read on to determine, How Risk Free Is The Risk-Free Rate
    Of Return?.) Problems in Target Land The apparent simplicity of the approaches ...

  • CFA Level 1 Study Guide - Corporate Finance - Target Capital ...

    http://www.investopedia.com/exam-guide/cfa-level-1/corporate-finance/target-capital-structure.asp
    ... 11.7 Target Capital Structure; 11.8 Marginal Cost of Capital; 11.9 Factors Affecting
    the Cost ... 11.11 Net Present Value (NPV) and the Internal Rate of Return (IRR) ...

  • Critical Shortcoming of Leveraged ETFs

    http://stocks.investopedia.com/stock-analysis/moneyshow/CriticalShortcomingofLeveragedETFs.aspx
    ... of daily returns, ProSharesÂ’ returns over periods other than one day will likely
    differ in amount and possibly direction from the target return for the same ...

  • CFA Level 1 Study Guide - Alternative Investments - Hedge Fund ...

    http://www.investopedia.com/exam-guide/cfa-level-1/alternative-investments/hedge-fund-basics.asp
    ... 11.7 Target Capital Structure; 11.8 Marginal Cost of Capital; 11.9 Factors Affecting
    the Cost ... 11.11 Net Present Value (NPV) and the Internal Rate of Return (IRR) ...

  • Investment Policy Pitfalls

    http://www.investopedia.com/articles/stocks/10/investment-policy-statement-pitfalls.asp
    ... return for an annual vacation. This goal sets a distinct target return
    and a potential use of those returns. This is a short-term ...

  • Will Your Retirement Income Be Enough?

    http://www.investopedia.com/articles/retirement/05/050405.asp
    ... When calculating your target nest egg, and how much you have to save each month
    to reach that target, there are many factors that come ... Portfolio risk/return. ...

  • 4 Steps To Creating A Better Investment Strategy

    http://www.investopedia.com/articles/trading/10/creating-a-better-investment-strategy.asp
    ... Barclays Aggregate Bond Index. An example of an absolute benchmark would
    be a target return, such as 6% annually. Although it can ...

  • How To Use Price Adjustments To Get The Best Deals - Investopedia. ...

    http://financialedge.investopedia.com/financial-edge/1111/How-To-Use-Price-Adjustments-To-Get-The-Best-Deals.aspx
    ... it with the better gift card deal, you'll need to return your original, unspent
    bonus gift card as well; for deals like these, Target receipts state that "All ...

  • Bear Market Mauls Target-Date Funds

    http://www.investopedia.com/articles/mutualfund/09/bear-market-target-date-fund.asp
    ... on retiring in 2010 – and to get such a high return requires taking on more risk.
    The Oppenheimer Fund was not alone though, as other target date fund also ...

Related Articles

Bank Rates
Product Today Last Wk
$10K MMA 0.50% 0.51%
MMA 0.45% 0.46%
6 Month CD 0.46% 0.47%
1 Year CD 0.70% 0.75%
5 Year CD 1.46% 1.46%
1 Year Jumbo CD 0.66% 0.67%
Rate data provided by Bankrate
Product Today Last Wk
$30K HELOC 4.59% 4.60%
$30K Home Equity Loan 5.74% 5.77%
$50K Home Equity Loan 5.45% 5.50%
$50K HELOC 4.24% 4.24%
$100K Home Equity Loan 5.41% 5.46%
$100K HELOC 4.13% 4.13%
Rate data provided by Bankrate
Product Today Last Wk
30 Year Fixed 3.80% 3.80%
15 Year Fixed 3.09% 3.11%
1 Year ARM 3.54% 3.53%
30 Year Fixed Jumbo 4.38% 4.38%
5/1 ARM 2.65% 2.69%
3/1 ARM 2.69% 2.69%
Rate data provided by Bankrate
Product Today Last Wk
60 Month Used Car Loan 4.51% 4.51%
48 Month Used Car Loan 4.35% 4.35%
48 Month New Car Loan 3.24% 3.24%
36 Month Used Car Loan 4.34% 4.36%
36 Month New Car Loan 3.11% 3.13%
60 Month New Car Loan 3.35% 3.34%
Rate data provided by Bankrate
Partner Links