CH7APLK - CH. 7 PROSPECTIVE ANALYSIS: VALUATION THEORY AND...

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CH. 7 PROSPECTIVE ANALYSIS: VALUATION THEORY AND CONCEPTS
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Methods of Valuation Discounted dividend model The value of equity is the present value of future dividends Discounted abnormal earnings model Equity value = BV of equity + PV of expected future abnormal earnings
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Methods of Valuation (Cont’d) Price multiples Estimate price multiples for comparable
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CH7APLK - CH. 7 PROSPECTIVE ANALYSIS: VALUATION THEORY AND...

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