Issue 3, 2004

Volkov D. L. Models of Fundamental Valuation of Equity: Problem of Equivalence

This article is devoted to theoretical analysis of models of fundamental equity valuation. Analysis of valuation models is related to issues of practical implementation of VBM (value-based management) concept. The article contains detailed description of main models. Proposition about the equivalence of Discounted Dividend (DDM), Free Cash Flows (DFCFM), Residual Operating Income (ReOIM), and Residual Earnings (REM) models is proved.

<< Contents: Issue 3, 2004
<< Go to archive