Favourite Equation?

@hairyfairy exactly!

It’s the good ol’ dividend discount model for me. It’s simple, makes sense, I guess one of the basic valuation methodology. Forms a basis to all the different variations in cash flow definitions later on (FCFF, FCFE).

You’ll have to define the metrics to value a ‘favourite’ equation @MattJuniper… 😀

Every equation I can remember under pressure is my favourite equation. When I realise I KNOW which equation to use, and know which values from the equation fit where…That’s ecstasy!

@hairyfairy Spot on!

hmm… actually I like the derivatives part pay off calculations… perhaps not strictly formula per se, because that section makes sense with all those charts of payoff and I never have to remember much formula for them!

I like TVM equations. The idea of being to reach across time (or payments across time) and settle for an equivalent one-shot payment, either now, or at any point in time, is pretty awesome. 🙂