Start with the business
Translate business drivers into cash-flow assumptions. Keep observed financial facts distinct from forward-looking judgments.
All researchThe research perspectives
Equity Valuation
A price is visible. Value takes context.
Connect the economics of a business to the expectations embedded in its price. Make the assumptions visible, then ask how much the conclusion depends on them.
The perspective01The perspective
A valuation is an argument, not a point of certainty.
Revenue growth, cash generation, reinvestment and required returns tell different parts of the story. A useful valuation makes their connections explicit and explores what changes when the story changes.
Build a range of outcomes
Vary growth, cash conversion and the discount rate together. Explain the economic story behind each scenario.
Read the expectations
Reverse the question: what must the business deliver for a given price to make sense under a stated set of assumptions?
An interactive study
Small assumptions. Different conclusions.
Switch between three hypothetical cash-flow scenarios. The index compares model values; it is not a stock-price target or a probability interval.
Selected lens
A reference, not a verdict.
The base case is one coherent set of assumptions. Its usefulness comes from understanding the assumptions, not the precision of the final number.
Illustrative study · hypothetical inputs · no live market data
Hypothetical cash flow starts at 10 units. Initial growth −2% / 5% / 10% fades to 2% over five years; discount rates are 11% / 10% / 9%. Terminal growth is 2%. Values are indexed to the base case, not market data.
02Questions worth asking
Which assumption moves the value?
Sensitivity matters. A conclusion that depends heavily on one distant assumption should be read with care.
Are cash flows and rates consistent?
Cash flows to the firm and cash flows to equity require different treatments. Mixing the two can obscure what is being valued.
What is already in the price?
A strong business and an attractive price are separate questions. Compare the operating story with the expectations the price requires.
Further readingFree Cash Flow Valuation · CFA Institute ↗
Good research starts with a better question.
Start a conversationA research perspective, not an investment recommendation. Interactive examples illustrate methods and do not represent company performance or a trading strategy.