Quantitative Valuation

Purpose

Provides frameworks and formulas for estimating the intrinsic value of a stock or company using quantitative models. Covers discounted cash flow (DCF), dividend discount models (DDM), comparable multiples, residual income, and sum-of-the-parts valuation. Enables rigorous, assumption-driven valuation that can be stress-tested through sensitivity analysis.

Layer

3 — Valuation

Direction

prospective

When to Use

• Valuing a stock or company from first principles
• Building a discounted cash flow (DCF) model
• Comparing a company's multiples to peers or its own history
• Estimating intrinsic value using dividend discount models
• Performing sum-of-the-parts valuation for a conglomerate
• Running sensitivity analysis on valuation assumptions
• Screening for undervalued or overvalued securities using relative multiples