Discounted Cash Flow (DCF) and Growth Models
Free CFA Level I lesson in Equity Investments. 14 min read, ~2,115 words.
1. contrast the inputs used in dividend discount, free cash flow to equity (FCFE), free cash flow to the firm (FCFF), and residual income models, and explain the process for using present value models to value equity. 2. calculate and interpret the intrinsic value of an equity security based on...
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What this lesson covers
- Content
- Example 1
- Example 2
- Common Mistakes
- Key Takeaways
- Exam Shortcuts
Learning objectives
- equity instrument features
- equity jurisdictions classes and voting
- equity issuance and trading
- sources of equity returns
- introduction to equity valuation
- DCF and growth models
- relative value valuation
- financial statement forecasting
- industry and competitive analysis
- company analysis
- equity analyst research reports
- CAPM market model and factor models
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