Abstract
In an introductory finance course, students are introduced to the concept of equity valuation in the form of the constant growth dividend discount model. In advanced courses they are exposed to additional valuation approaches such as free cash flows, adjusted present value, residual earnings and economic profit models. Unfortunately students do not have the opportunity to go beyond the calculations and learn the basic assumptions of each model that will lead to consistent valuations regardless of which model they choose. In this paper, we value an example company using 6 models that lead to identical equity values.
Recommended Citation
(2026)
"Obtaining Consistent Corporate Valuations,"
Journal of Economics and Finance Education: Vol. 15:
Iss.
1, Article 12.
Available at:
https://scholarship.rollins.edu/jefe/vol15/iss1/12
