Determining the worth of equity is a pivotal aspect of investment assessment. 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 objective equity valuation. Commonly used models include the Discounted Cash Flow (DCF) analysis
Valuation Multiples in Equity Research Modeling
In the realm for equity research modeling, valuation multiples serve to act as a crucial tool in order to assess the relative value of companies. These multiples analyze a company's financial performance with industry benchmarks or similar peers. Popular valuation multiples encompass the price-to-earnings (P/E) ratio, price-to-book (P/B) ratio, and