"CCM" heard of this valuaton method?

passme

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Cashflow capitalization method
came up in the sample exam. go figure…lol
 
It’s private company valuation. I think it’s FCFF1/(WACC-g).
 
i think you are right….
LOL dude you ll pass for sure….
 
yeah its there in schweser…..it’s a single stage valuation technique….the forumla given above is the one i’d read too…..also called capitalization of earnings mtd or capitalized income mtd…
 
Whenever the mention either the capitalization method or direct capitalization method they essentially mean CF1/r-g
The cash flow can vary from dividends, free cashflow or even NOI in property.
 
In the 2015 curriculum, Volume 4 (Equity) it appears on p. 299 (footnote 3), p. 553, and pp. 559–561.
Zestzorb nailed it.
 
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