What are the three main valuation techniques used in finance?

Relative Valuation, Option-Based Valuation, Discounted Cash Flow Analysis Fundamental Analysis, Technical Analysis, Sentiment Analysis Quantitative Analysis, Qualitative Analysis, Hybrid Analysis Top-Down Analysis, Bottom-Up Analysis, Comparative Analysis

What does 'Enterprise Value' refer to in the context of company valuation?

The total value of the company's assets, representing the value of the entire firm The market capitalization of the company, reflecting the value of its outstanding shares The book value of the company's assets, as recorded on its balance sheet The net income of the company, representing its profitability

What is the key difference between Free Cash Flow to the Firm (FCFF) and Free Cash Flow to Equity (FCFE)?

FCFF represents cash flow available to all investors (debt and equity holders), while FCFE represents cash flow available only to equity holders FCFF is calculated before interest payments, while FCFE is calculated after interest payments FCFF is used for valuing the entire company, while FCFE is used for valuing individual projects FCFF is based on net income, while FCFE is based on operating cash flow

What is the 'Effective Cost of Debt'?

The cost of debt after considering the tax shield benefit, reflecting the reduced cost due to tax deductibility of interest payments The actual interest rate paid on outstanding debt, without considering any tax implications The cost of debt adjusted for inflation, reflecting the real cost of borrowing The cost of debt relative to the company's equity, indicating the debt-to-equity ratio

What is the 'Terminal Value' in the context of Discounted Cash Flow (DCF) analysis?

The estimated value of the company's cash flows beyond the explicit forecast period, often calculated using a perpetuity growth model The final year of the explicit forecast period in a DCF model, representing the last year of detailed projections The present value of all future cash flows in a DCF model, representing the total value of the company The discount rate used to calculate the present value of future cash flows in a DCF model