Comparable company analysis values a business using the trading multiples of similar publicly listed companies. According to the CFA Institute equity valuation curriculum, market-based methods like comps serve both as…

Enterprise value measures what it truly costs to acquire a business. Learn the EV formula, how to calculate it, and how analysts use it in valuation.

The dividend discount model (DDM) values a stock by discounting all expected future dividend payments to present value at the cost of equity. According to Aswath Damodaran of NYU Stern,…