Valuation Methods used in both Buy and Sell side

Hi everyone,

I searched around the forum regarding the valuation methods discussion and saw many different opinions....

Generally there are 4 methods.... But under DCF, there are many and i am wondering how many of them are actually used in the industry?

Dividend Discount, FCFE, FCFF, Residual Income, APV (in theory it should yield the same results as FCFF based on WACC),

what i heard from the forum is like, FCFE was removed from my bank, or DDM is not used. is always used in my firm.......etc....

Probably the use of one method also depends on the industry or the company, say, you cannot used DDM for a non-dividend paying company.

So again, my question are 1) in the industry, what are the most popular methods within DCF range? and the rest of unpopular ones, maybe is just fond of by academic? 2) for buy/sell side, are there any preferred methods for each side?

Thanks for all your input.

1 Comments
 

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