CFA Level 2: Equity Valuation
Master the CFA Level II Equity Valuation topic area. This course covers all six official 2026 Learning Modules, one chapter each: the valuation process — intrinsic value, sources of perceived mispricing, going concern, definitions of value, industry and competitive analysis, sum-of-the-parts and conglomerate discounts, and choosing an approach; discounted dividend valuation from the Gordon growth model through two-stage, H-model, and three-stage forms, with PVGO, justified P/Es, implied growth rates, required-return extraction, and DuPont-based sustainable growth; free cash flow to the firm and to equity computed from net income, EBIT, EBITDA, and CFO, forecast and applied in single-stage and multistage models; market-based valuation with justified price and enterprise value multiples, normalized earnings, PEG, momentum indicators, and the harmonic mean; residual income, EVA, and MVA with single-stage and multistage models, continuing residual income, and clean-surplus accounting; and private company valuation — normalized earnings, build-up and expanded CAPM discount rates, the income, market, and asset-based approaches, and discounts for lack of control and marketability. Every chapter teaches through one coherent environment — a single anchor company whose dividend, free cash flow, and residual income valuations reconcile to the same intrinsic value — and assesses in the exam's own vignette format: item sets with data exhibits, three-option questions, and distractors built from real candidate errors. The course closes with a full timed item-set exam. Aligned to the 10-15% CFA Level II exam weight.
- Level: intermediate
- Duration: 5 weeks
- 8 sections
- Price: $20
Topics: equity valuation, intrinsic value, mispricing, going concern, sum-of-the-parts, conglomerate discount, industry analysis, competitive analysis, dividend discount model, Gordon growth model, two-stage DDM, H-model, three-stage DDM, terminal value, present value of growth opportunities, PVGO, justified P/E, implied growth rate, sustainable growth rate, DuPont analysis, free cash flow to the firm, free cash flow to equity, FCFF, FCFE, WACC, single-stage models, multistage models, sensitivity analysis, price multiples, enterprise value multiples, EV/EBITDA, justified price-to-book, price-to-sales, PEG ratio, normalized earnings, underlying earnings, earnings yield, method of comparables, cross-sectional regression, momentum indicators, harmonic mean, residual income, economic value added, market value added, continuing residual income, persistence factor, clean surplus accounting, private company valuation, normalized earnings adjustments, capitalized cash flow method, guideline public company method, guideline transactions method, excess earnings method, build-up approach, expanded CAPM, control premium, discount for lack of control, discount for lack of marketability, CFA Level II, equity investments, item sets, vignettes
What's inside
- Equity Valuation (CFA Level II)
- Chapter 1: Equity Valuation — Applications and Processes
- Chapter 2: Discounted Dividend Valuation
- Chapter 3: Free Cash Flow Valuation
- Chapter 4: Market-Based Valuation — Price and Enterprise Value Multiples
- Chapter 5: Residual Income Valuation
- Chapter 6: Private Company Valuation
- Chapter 7: Equity Valuation Item-Set Exam