Three residual income valuation methods and discounted cash flow valuation

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Fernandez, Pablo;
(2003)
  • Subject: cash value added; EVA; economic profit; residual income valuation; discounted cash flow valuation; valuation;
    • jel: jel:G12 | jel:G31 | jel:M21

In this paper we show that the three residual Income models for equity valuation always yield the same value as the Discounted Cash Flow Valuation models. We use three residual income measures: Economic Profit, Economic Value Added (EVA) and Cash Value Added. We also sh... View more
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