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General valuation models






                       • Estimate the                       • Mathematically                      •Complex form of
                          value of                             calculate the                        absolute value
                          something by                         present value of                     model that values

                          observing prices                     an asset’s                           enterprises still
                          of similar things                    expected future                      needing

                                                               cash flows                           substantial
                                                                                                    development to
                                                                                                    reach their

                                                                                                    economic
                                                                                                    potential



                       Relative                              Absolute                             Option
                       value                                 value                                pricing





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