Equity Investing

  1. Stock Valuation Models
    1. Absolute Valuation Models
      1. Discounted Cash Flow (DCF) Models
        1. Free Cash Flow to Firm (FCFF)
          1. Free Cash Flow to Equity (FCFE)
            1. Discount Rate Determination
              1. Weighted Average Cost of Capital (WACC)
                1. Cost of Equity
                  1. Cost of Debt
                  2. Terminal Value Calculation
                    1. Perpetual Growth Method
                      1. Exit Multiple Method
                      2. Sensitivity Analysis
                      3. Dividend Discount Models
                        1. Gordon Growth Model
                          1. Two-Stage DDM
                            1. Multi-Stage DDM
                              1. Variable Growth DDM
                              2. Residual Income Models
                                1. Economic Value Added (EVA)
                                  1. Residual Income Valuation
                                2. Relative Valuation Models
                                  1. Comparable Company Analysis
                                    1. Peer Group Selection
                                      1. Multiple Selection
                                        1. Adjustments and Normalization
                                        2. Precedent Transaction Analysis
                                          1. Transaction Selection
                                            1. Control Premiums
                                              1. Synergy Considerations
                                              2. Trading Multiples
                                                1. P/E Multiple Analysis
                                                  1. EV/EBITDA Analysis
                                                    1. Price-to-Book Analysis
                                                  2. Asset-Based Valuation
                                                    1. Book Value Method
                                                      1. Liquidation Value
                                                        1. Replacement Cost Method
                                                        2. Sum-of-the-Parts Valuation
                                                          1. Conglomerate Valuation
                                                            1. Business Segment Analysis

                                                          Previous

                                                          4. Fundamental Analysis

                                                          Go to top

                                                          Next

                                                          6. Technical Analysis