VALUING EQUITY: A DEEP DIVE INTO FINANCIAL MODELING TECHNIQUES

Determining the worth of equity is a pivotal aspect of investment analysis. This involves employing a range of sophisticated financial modeling techniques to forecast future cash flows, discount them to their present value, and ultimately arrive at an realistic equity valuation. Commonly used models include the Discounted Cash Flow (DCF) analysis,

In the realm in equity research modeling, valuation multiples serve being a crucial tool to assess the relative value concerning companies. These multiples compare a company's financial performance relative to industry benchmarks or similar firms. Popular valuation multiples comprise the price-to-earnings (P/E) ratio, price-to-book (P/B) ratio, and