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I came up with a better single-stage residual income model.
Has anyone seen this before? I'm basically multiplying the book value with the justified price-to-book ratio to come up with a stock value that takes into account single stage residual income.
Vo=BVo[(ROE-g)/(r-g)]
Seems easier than the CFA model:
Vo=BVo+[(ROE-r)BVo/(r-g)]
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Just be careful not to get all of those mixed up with the formula for justified BV = (ROE-g)/(r-g)... They all start to melt together when they are similar.