Background Note | HBS Case Collection | December 1994 (Revised September 2012)

Note on Valuing Equity Cash Flows

by Timothy A. Luehrman


A technical note for advanced students on the topic of valuing highly-levered equity. Introduces the "equity cash flow" valuation methodology, shows how to use it, discusses the sources and signs of its built-in biases, and provides some guidance about when to use it.

Keywords: Cash Flow; Equity; Valuation;


Luehrman, Timothy A. "Note on Valuing Equity Cash Flows." Harvard Business School Background Note 295-085, December 1994. (Revised September 2012.)