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Strengths of Residual Income Model

December 30, 2015
  1. Terminal Value does not dominate intrinsic value estimate.
  2. Accounting data usually accessible.
  3. Applicable even without dividends or positive cashflow.
  4. Applicable even when cash flows are volatile or unpredictable.
  5. Focuses on economic profitability.
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From → Asset Valuation

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