Glossary ยท Lesson 6.5
Residual Income
A residual income valuation assumes a business is worth its book value plus the present value of all future profits earned above its cost of equity.
Definition
A residual income valuation assumes a business is worth its book value plus the present value of all future profits earned above its cost of equity.
In FactorSage
Exposed as RESIDUAL_INCOME_VALUE (Starter+) and RESIDUAL_INCOME_VALUE_TTM (Pro).
Related
- Residual Income valuationIntrinsic Value