Equity residual method
Equity residual method is a method used to value a target firm using cash flows that are residuals and belong solely to the acquiring firm’s shareholders.
Definitions
According to Fundamentals of Financial Management by Eugene F. Brigham and Joel F. Houston (15th edition),
- Equity residual method. A method used to value a target firm using cash flows that are residuals and belong solely to the acquiring firm’s shareholders.
Related concepts
- Financial management. A combination of enterprise efforts undertaken in order to procure and utilize monetary resources of the enterprise.
