Suppose You Love Your Current DCF Model

There are four main categories of discounted cash flow models: (a) Dividend discount models (affectionately called “DDM”) (b) EVA® or residual income models (c) CFROI® or cash economic return models and (d) Regression models of price level. This chapter describes the most recognized discounted cash flow models and provides with the best references so that readers can decide which ones are best to use for valuation and stock selection.