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Financial Value Investing
Financial Value Investing
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Model Choice
(in currency)
Yes
(Yes or No)
If the earnings are positive and normal, please enter the following:
What is the expected inflation rate in the econ
3.00%
(in percent)
2.00%
(in percent)
15.00%
Yes
Differential Advantages: High growth comes from a firm earning excess returns on its projects,
possessed by the firm over its competitors. This differential advantage can be legal (as is the case with lega
or a strong brand name (as is the case with many consumer product firms) or economies of scale. The ques
the existing differential advantage but also to the future.
4.00%
Yes
Dividend Policy
What did the firm pay out as dividends in the current year?
Can you estimate capital expenditures and working capital requ
Enter the following inputs (from the current year) for computing FCFE
Net Income (NI)
$200.00
$50.00
$100.00
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$100.00
Yes
Model Choice
$25.00
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Model Choice
Discounted CF Mo
Current Earnings
10 or more years
Three-stage Grow
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Model Choice
ALUATION MODEL
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Model Choice
del
(in percent)
(Yes or No)
excess returns on its projects, which in turn comes from some differential advantage
n be legal (as is the case with legal monopolies like telecom), or technological,
s) or economies of scale. The question that is being asked relates not just to
(Yes or No)
(Yes or No)
(Yes or No)
(Yes or No)
(Yes or No)
(in percent)
(Yes or No)
(in currency)
(Yes or No)
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Model Choice
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Model Choice
$128.00
! In an n-stage model, you will estimate target operating margins (if valuing the firm)
or net margins (if valuing equity) and revenue growth each year.
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