The CFA curriculum discusses a variety of methods for estimating the value of a company’s equity. The approaches, or models, fall broadly into these categories (covered in separate articles; follow the links):
- Present value models (also known as discounted cash flow models)
- Dividend discount models (DDMs)
- Free cash flow to equity (FCFE) models
- Free cash flow to the firm (FCFF) models
- Multiplier models (also known as market multiple models)
- Share price models
- Price-to-earnings (P/E) ratio
- Price-to-sales (P/S) ratio
- Enterprise value (EV) models
- EV/EBITDA ratio
- Share price models
- Asset-based models