All posts for the day March 1st, 2023

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)
  • 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
  • Asset-based models