Three methods of company value evaluation What are the three methods of company value evaluation?

1, the relative valuation method is simple and easy to understand, and it is also the most widely used valuation method for investors. In the relative valuation method, commonly used indicators are P/E ratio, P/E ratio, EV/EBITDA multiple and so on.

2. Absolute valuation method: the dividend discount model and the free cash flow discount model adopt the capitalization pricing method of income, and the intrinsic value of the company's stock is obtained by forecasting the company's future dividend or future free cash flow, and then discounting it.

3. Discounting cash flow by income method: This is a relatively mature valuation method. By forecasting the company's future free cash flow and capital cost, the company's future free cash flow is discounted, and the company value is the present value of future cash flow.