Big4WallStreet Finance Blog — free cash flows to equity

The Valuation Process Definitions of value Several value definitions serve as the foundation for the variety of valuation models available to the comparison of equity valuation methods, such as intrinsic value, going-concern value, liquidation value, and fair value. Intrinsic Value The intrinsic value of any asset is the value of the asset given a hypothetically complete understanding of the asset’s investment characteristics. The intrinsic value suggests that an asset’s market price is the best available estimate of its intrinsic value. Going-Concern Value and Liquidation Value In estimating value, a going- concern assumption is the assumption that the company will continue...