WACC vs. Equity Residual Method
Hi!
I was just wondering if Discounted Cash Flow using WACC and Equity Residual Method should yield the same result? I can't seem to get the same value.
Thanks!
Hi!
I was just wondering if Discounted Cash Flow using WACC and Equity Residual Method should yield the same result? I can't seem to get the same value.
Thanks!
+81 | Q&A - Buyside Equity Research Analyst/PM | 29 | 4h | |
+32 | How the heck do you learn all of this stuff? | 5 | 6d | |
+28 | My experience on the sell side | 20 | 1w | |
+28 | Getting Frustrated | 10 | 3w | |
+26 | What’s my next move? | 7 | 7h | |
+18 | Biotech ER vs IB | 16 | 3w | |
+14 | Heard they don’t model at Oppenheimer | 10 | 1w | |
+14 | Data Science to PM | 8 | 3d | |
+14 | Am i fairly compensated? | 8 | 19h | |
+13 | ER time line and ways to break in help | 17 | 3w |
Career Resources
Not sure what "Equity Residual Method" is. Do you mean "Residual Income," which is a similar concept to "Economic Profit" or "Economic Value Added?" If so, the short answer is that, in theory, yes, but, in practice, it is hard to do.
Architecto earum ut reiciendis architecto aperiam suscipit. Expedita natus pariatur nihil.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...