Browse CFA Level 2 Essentials

Chapter 5: Equity Valuation—Models, Applications, and Market Nuances

Chapter 5: Equity Valuation—Models, Applications, and Market Nuances explains the core concepts, key definitions, and practical implications you need for solid analysis. It highlights common pitfalls and the intuition behind the methods so the results are interpreted correctly.

In this section

  • Dividend Discount and Free Cash Flow Models
    Dividend Discount and Free Cash Flow Models (CFA Level 2): Covers Valuation Foundations and Why This Matters with key formulas and practical examples. Includes exam-style practice questions with explanations.
  • Residual Income Valuation and Applications
    Residual Income Valuation and Applications (CFA Level 2): Clear explanations, key formulas, and practical examples for CFA Level 2 applications. Includes exam-style practice questions with explanations.
  • Market-Based Valuation and Relative Valuation
    Market-Based Valuation and Relative Valuation (CFA Level 2): Covers Rationale Behind Market-Based Valuation and Method of Comparables: Practical Steps with key formulas and practical examples. Includes exam-style practice questions with explanations.
  • Private Company Valuation
    Private Company Valuation (CFA Level 2): Covers Methods and Income-Based Approaches with key formulas and practical examples. Includes exam-style practice questions with explanations.
  • Specialized and Advanced Valuation Perspectives
    Specialized and Advanced Valuation Perspectives (CFA Level 2): Covers Valuing Resource-Sector Companies (Energy, Mining) and Commodity Price Forecasts with key formulas and practical examples. Includes exam-style practice questions with explanations.

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Chapter 4: Corporate Finance, Governance, and Valuation
Chapter 6: Fixed Income Valuation and Analysis