H Model – Dividend Discount Model
The H model is another form of the Dividend Discount Model under Discounted Cash flow (DCF) method, which breaks down the cash flows (dividends)… Read Article
Equity Valuation
Constant Growth Rate Discounted Cash Flow Model/Gordon Growth Model
Gordon Growth Model is a part of the Dividend Discount Model. This model assumes that both the dividend amount and the stock’s fair value… Read Article
Two-Stage Growth Model – Dividend Discount Model
The two-stage dividend discount model takes into account two stages of growth. This method of equity valuation is not a model based on two… Read Article
Single Period Model – Discounted Cash Flow Model
Single Period Model, one of the discounted cash flow models, is an income valuation approach that aims to find the fair value of a… Read Article
Tobin’s Q / Q Ratio
Tobin’s Q ratio is a popular replacement value method of estimating a stock’s fair value and can be practically used by market participants to… Read Article
Replacement Value Method of Equity Valuation
The replacement value method considers ‘the amount required to replace the existing company’ as the valuation of a company. In other words, if one… Read Article
Liquidation Value Method of Equity Valuation
The liquidation value method of equity valuation is one of the techniques under Balance Sheet based methods of valuation, which assumes that the value… Read Article
Equity Valuation Methods
Equity valuation methods can be broadly classified into balance sheet methods, discounted cash flow methods, and relative valuation methods. Balance sheet methods comprise book… Read Article
Cost of Equity – Dividend Discount Model
Cost of equity can be worked out with the help of Gordon’s Dividend Discount Model. The model focuses on dividends, as the name suggests.… Read Article