Residual Income Model
Valuation
What is Residual Income Model?
A valuation approach that measures the value a company creates above its cost of equity. Calculates excess earnings relative to what shareholders require as a return.
Why Residual Income Model matters
StockFind uses this model for financial sector companies where traditional DCF may be less applicable due to the nature of bank balance sheets.
Related terms in Valuation
Definitions are provided for educational and informational purposes only and are not investment advice. Consult a qualified financial advisor before making investment decisions.