An alternative to NPV. Cash flows are discounted using the cost of equity (instead of the WACC) and a separate adjustment is made for financing (i.e, the tax savings.
The calculation of the present value of a stream of future cash flows taking into account both risk and the time expected to elapse before the cash is received.
A financial model that values shares at the discounted value of future dividend payments. This is theoretically the most correct way of valuing shares.
