Definition for : Equilibrium value
GLOSSARY LETTER
Equilibrium Value of a Security in an Efficient market is always equal to the Present value of the cash flows it give rights to. If there is a disequilibrium, Arbitrage operations will move the Value of the Security to its equilibrium Value.
(See Chapter 15 The financial markets of the Vernimmen)
To know more about it, look at what we have already written on this subject