Discounted Cash Flow Model Exa Study guides, Class notes & Summaries

three equity securities valuation methods: dividend discount model, com-prables model, discounted cash flow models 2. essense of DCF: using cash flows to value equity shares 3. earnings are not optimale in robust equity valuation: do not adequetely incor-porate investments and ROIC 4. ROIC:return on capital investments 5. investments include: operating and capital 6. instead of using earnings: use free cash flows 7. freecash flows result: froma firm's operations and includes NOPAT adju...