Complete No Name
1 Valuation
2 Discounted Cash Flows
3 Valuing an Asset with Guaranteed Cash Flows
4 Valuing an Asset with Uncertain Cash Flows
5 Zero Growth Dividend Discount Model
6 Constant Growth Dividend Discount Model
7 Two-Stage Dividend Discount Model
8 Cost of Equity
9 Free Cash Flow to Equity
10 Reasons for Valuation

In chapter ten, we synthesize the concepts of risk, return, and earnings of the company into a final decision making process: the valuation of a stock. Discussed are various methods used to arrive at a fair market value (FMV) of the share of a company. Based on these estimated for FMV, investors decide whether a stock is over priced, under girded or trading at a fair price. After reading the material on valuation, the reader should be able to estimate the fair value of a share, or a company’s total equity, by using the Dividend Discount Model, Free Cash Flow Method, or by using various valuation multiples.