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Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA FM Exams › Valuation of shares – discounted cash flow basis
Dear sir,
In valuation of shares, we have “Cash-flow based valuation models”:
(i) dividend valuation model and the dividend growth model
(ii) discounted cash flow basis.
Can you please highlight the importance of “discounted cash flow basis” model?
I am confused about its name as we studied discounted cashflows in investment appraisal.
I think we did not cover it in valuation of shares. So should I study anything about it in F9?
Thanks,
