Present Value of Growth Opportunities PVGO.

Present Value of Growth Opportunities (PVGO) is a concept that gives analysts a different approach to equity valuation. PVGO stands for present value of growth opportunities and it represents the component of a company's stock value that corresponds to the investors' expectations of growth in earnings.

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Considering that valuation in stock markets is a combination of fundamentals and expectations, we can break down the value of a stock to the sum of (1) its value assuming no earnings reinvested and (2) the present value of growth opportunities.