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CFA Level 2
Equity Investments

Equity Valuation Using Free Cash Flow

Very Easy Equity Valuation Applications Free Cash Flow Valuation

A company's investors are seeking a valuation method that considers the generation of cash flows over time, independent of the company's capital structure. This approach values the firm based on the expected future cash flows, which are discounted back to their present value.

In the context of equity valuation, which valuation method prominently utilizes free cash flows to assess a company's value?

Hint

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