# Valuation This module implements the basic Gordon Growth Model to demonstrate the valuation of an investment project. Since this module targets to calculate the expected return and investment value of Chinese investment projects, we take the size bottom 20% of Chinese listed firms and regress their annual returns with certain financial characters. We finally choose two variables, "Total Asset Growth Rate" (TAGR) and "Gross Profit Ratio" (GPR), and use corresponding coefficients to calculate the expected return (ER) for an investment project.\ \&#xNAN;**$ER = 26.67% - .656 \* TAGR - .1013 \* GPR$** Adjusting the inputs of "Total Asset Growth Rate" and "Gross Profit Ratio" under the *characteristic model* tab lets you calculate and save the expected return of an investment project. In the *portfolio composition* tab, users can apply the Gordon Growth Model to evaluate a project's cash flow and total value. Users need to input the initial investment cost, the first annual cash flow (D\_1), and the expected growth rate (g), then select the calculated cost of equity (r) from the previous step. The project evaluation will illustrate the cash flow development. --- # Agent Instructions: Querying This Documentation If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question. Perform an HTTP GET request on the current page URL with the `ask` query parameter: ``` GET https://docs.nuvolos.com/help-and-reference/application-reference/invelab/modules/valuation.md?ask= ``` The question should be specific, self-contained, and written in natural language. The response will contain a direct answer to the question and relevant excerpts and sources from the documentation. Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.