At the heart of the DCF is the basic assumption that a firm’s intrinsic valuation is equivalent to the sum of all its future free cash flows (FCF). As those familiar with the DCF will know, ...

This article ( original research paper) proposes a systematic regression-based fundamental equity valuation model that can potentially be applied in areas such as quantitative finance and machine ...

Knowing which valuation model to use for financial analysis can be incredibly confusing for even the most seasoned of investors. For instance, while my relative valuation model tells me Hexcel ...

Choosing the right financial tool to evaluate a company can be a daunting task, especially when different models are giving you drastically different conclusions. A prime example of conflicts between ...

Relative valuation offers the benefit of simplicity in valuing a company, but in this simplicity lies danger. Discover the caveats inherent to this methodology, and see if IBM shares are in fact ...

Improving economic conditions have compelled Merrill Lynch & Co. s lead bank and brokerage analyst to change the way he looks at valuation models, for now. Judah S. Kraushaar said in a research note ...

Before we move on, let’s evaluate whether this number is accurate. Since it is generally impossible to forecast FCFs indefinitely, it is common for analysts to forecast for an explicit forecast ...

ADSK faces short-term headwinds due to macro cycles. The shift to an annual payment model may cause increased volatility and lower free cash flow in the short term, but offers potential future ...

Faber Group looks the most attractive on valuations among eight stocks in Malaysia's healthcare sector tracked by at least three analysts, data from Thomson Reuters StarMine shows. The facilities ...

Two camps traditionally exist when it comes to stock valuation: intrinsic vs. relative. Intrinsic valuation involves cash flow projections, estimated growth rates, and present value discounting.