CFA® Level II Equity Valuation - Residual Income Model

This is an excerpt from our comprehensive animation library for CFA candidates. For more materials to help you ace the CFA Exam, head on down to prepnuggets.com.
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In this video, we unpack the Residual Income Valuation model, essential for CFA candidates. We cover the basic formula and apply it to a hypothetical firm ceasing operations in 3 years, guiding you through the calculations to find its intrinsic value. The tutorial also introduces the constant growth residual income model for long-term firms, and includes a hands-on exercise to determine if a stock is undervalued or overvalued. Perfect for mastering equity valuation for the CFA exam.

[@thelifeofdisa1127]

thanks for clear explanation

[@PrepNuggets]

You are welcome

[@alfarisabuziad9315]

Nice