This video is free lecture on the application of Residual Income Model for equity valuation. Full lecture can be found here:
Equity valuation takes central place in asset management. Knowing the value of a business helps to make the decision for investment. Franchise Value Model is one of the more simple yet accurate models for equity valuation.
The model effectively separates the overall value of the company into two components. First components is the value that comes from just operating the business. The second part is the value of the abnormal performance that company has recorded, however this value is also dependent on the ability to grow this abnormal performance in the future.
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