Residual income model: related pages

DCF valuation

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.

NPV (net present value)

The current value of a stream of future cash flows, negative or positive.

CAPM

A method of valuing securities or an investment using a discounted cash flow (DCF) using a risk adjusted discount rate.

Terminal value

The value used for the cash flow in the last year of an NPV; the value of the investment at the end of the last period of the NPV.