Expectations Valuation or Reverse DCF is a concept that deals with the Stock Market Prices and based on those, it is possible to understand the Expectations Value Drivers Built-in the Stock Market Price / Valuation (Price Scenario), build own Expectations in the Value Scenario and understand the Gap that exists between Price and Value. Thus supporting decision-making. Expectations Valuation helps the Investors and Businesses to determine whether a stock is Under Valued or Over Valued. The tool is valuable for both, Investors and Businesses. In other words, Expectations Valuation Concept or Reverse DCF Model is an inverse computation from Market Capitalization to Expectations Value Drivers. The Discounted Cashflow Model (DCF) is used to conduct the Expectations Valuation. All types of Companies (excluding Banking and Financial Services Companies) can be Valued through this Module.
Please read our book The Art of Intrinsic Valuation to learn more about Valuation and view the Video Link below to quickly learn how to Navigate the Expectations Valuation Module.