The dividend growth model, sometimes called the dividend discount model or discounted
cash flow model, is a commonly used tool for estimating the cost of equity capital, particularly …

In any context where a discounted cash flow valuation is required, there is the issue of estimating
the continuing value. The most common way to do that is to assume that by the terminal …

In path-breaking articles, Bradley and Jarrell develop an analysis that properly accounts for
inflation in the context of constant growth valuation models. They show that many traditional …

All corporate valuation models rely on very long forecasts of free cash flows. The only question
is whether those forecasts are accounted for explicitly by using an extended valuation …

Estimation of the terminal value of a business enterprise is a critical aspect of any corporate
valuation. In a path-breaking article, Bradley and Jarrell showed that traditional constant …

Long-run growth rates play a central role in all discounted cash flow models. This is true
whether the goal is to estimate the value of a company or to estimate the cost of equity. It is well …

Private equity firms market to limited partners by claiming to be able to earn returns on equity
of the order of 18% for their investors. Because this rate of return is typically higher than the …

Long-term growth rates play a central role in all discounted cash flow models. This is true
whether the goal is to estimate the value of a company or to estimate the cost of equity. It is well …

The dividend growth model (“DGM”), sometimes called the dividend discount model or
discounted cash flow model, is a commonly used tool for estimating the cost of equity capital, …

Since the mid-1960s inflation has been a consistent aspect of the US economy. Even at the
relatively low rates of approximately 2% that prevail today, inflation can have an important …