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Equity valuation models Capture the uncertainty of future cash flows by modeling a variety of scenarios Require a robust estimation of the cost of capital

  1. Equity valuation models
    1. Capture the uncertainty of future cash flows by modeling a variety of scenarios
    2. Require a robust estimation of the cost of capital
    3. Are important to understand a securitys performance relative to its benchmark

d. Are a simpler method to value companies, rather than using multiples and ratios

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