Constructing accurate financial models is paramount when undertaking equity valuation. These models serve as the foundation for assessing a company's intrinsic value, providing investors with vital insights into its potential. A robust model incorporates various factors, including past financial data, industry dynamics, and macroeconomic situations
Valuation Multiples in Equity Research Modeling
In the realm in equity research modeling, valuation multiples serve to act as a crucial tool for assess the relative value concerning companies. These multiples analyze a company's financial performance relative to industry benchmarks or similar companies. Popular valuation multiples include the price-to-earnings (P/E) ratio, price-to-book (P/B) ra