Investment Companies in Bahrain

Tadhamon Capital and Promoseven Holdings B.S.C.C. are amongst the top leading investment companies in Bahrain.

Tadhamon Capital was formed in the Kingdom of Bahrain in 2008 and is a wholly-owned subsidiary of Tadhamon International Islamic Bank. Tadhamon Capital is a leading Investment Company licensed by the Central Bank of Bahrain, offering a full choice of alternative investment opportunities, enabling Islamic investors to construct balanced and sophisticated portfolios accessing a full range of asset classes locally and internationally.

Promoseven Holdings B.S.C.C., a privately owned Bahraini Exempt Joint Stock Company established in 1989 is a major business conglomerate in the Gulf. it is a leading investment company with interests in real estate, public relations, advertising, the hospitality industry, investment and leisure enterprises. Promoseven Holdings owns majority shares in Middle East Communication Networks, which is the largest marketing and communications group in the Arab world.

How to Calculate Stock Price

We can calculate the stock price of a company by using the Constant Growth Stock Valuation formula, which is shown below:
Po = D1 / ( r - g )
and  D1 = D0 (1 + g)

where:
P0: Stock price
D0: Last dividend
D1: Next dividend
g: Growth rate in dividends
r: Rate of Return on the stock
Note: When using this formula, we assume that the company has a constant growth rate.

Example:
Find the stock price of a company, given that the current dividend is $3.00 per share, and the dividends are expected to grow at a constant rate of 5% in the future, and the required rate of return is 9%.

Solution:
D1 = D0 (1 + g)
D1 = $3.00 ( 1 + 0.05)
D1 = $3.00 (1.05)
D1 = $3.15

Po = D1 / ( r - g )
Po = $3.15 / (0.09 - 0.05)
Po = $3.15 / 0.04
Po = $78.75 (Stock Price)

* Next: How to Calculate Share Dividend