Equity Valuation
Objective
- Value the equity of a firm or project
Reading
- Chapter 18: Equity Valuation
Assignment
- Equity Valuation
Relative Valuation
Aswath Damodaran @ NYU
- Guest Video: Edspira
- Video Example by Dr. Rush
The Dividend Discount Model
FCF Valuation
Review
- Sources vs Uses of Cash @ ATM
- Net Working Capital @ Edspira
- The Weighted Average Cost of Capital (WACC) @ Edspira
- Free Cash Flow to the Firm @ Edspira
DCF using FCFF
DCF using Free Cash Flow to Equity
Sustainable Growth Rate @ ATM
Terminal Value
Aswath Damodaran @ NYU
Alternative Models
- Economic Value Added (EVA)
- Modified Residual Income
- Equity as an Option