CFA® L2 — Equity Investments
Equity valuation models — DDM, FCFE, residual income, market-based — applied to actual companies. Item-set heavy.
Quick info
- Layer
- Professional Certifications
- Track
- CFA® Level 2
- Estimated hours
- 50 hrs
- Chapters
- 6
- Exam body
- CFA Institute
- Cost on Trustner
- Free
The full chapter-by-chapter syllabus is published below so you know exactly what you're committing to. Individual lesson pages are being authored progressively over the coming weeks. Bookmark this page or browse all courses.
About this course
Equity valuation models — DDM, FCFE, residual income, market-based — applied to actual companies. Item-set heavy.
Who this is for
- CFA L2 candidates.
- Equity-research professionals.
What you'll learn
- DDM in multiple specifications
- Free-cash-flow models — FCFF and FCFE
- Residual-income valuation
- Market-based valuation with cross-checks
Full syllabus — 6 chapters
- 1Reading 1
Equity valuation overview
- Three-stage approach
- Choice of model by industry
- 2Reading 2
Dividend discount models
- Gordon growth, two-stage, H-model
- Implied growth and required return
- 3Reading 3
Free cash flow models
- FCFF and FCFE construction
- Sensitivity to assumptions
- 4Reading 4
Residual income models
- Theory and applications
- Continuing residual income
- 5Reading 5
Market-based valuation
- Trailing vs forward multiples
- Adjustments for differences
- 6Reading 6
Private-company valuation
- Discounts for lack of marketability
- Control premium considerations
About the exam
- Provider
- CFA Institute
Note: ~10-15% of CFA L2 weight.
The exam is administered by CFA Institute. Trustner Academy is not affiliated with CFA Institute; we provide independent preparatory educational material. See our disclaimer.
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