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CapitalEQA · Financial analysis

Equity Analyzer

Value the company. Defend the assumptions.

Practice equity valuation using connected financial models and fictional company examples. Compare the conclusions and explain why they differ.

Public application access is not currently live. Contact CapitalWave about demonstrations and availability.

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Learning focus

  • Returns and required return
  • Forecast construction
  • Dividend and cash-flow valuation
  • Residual income and reconciliation

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What learners and instructors can do

01

Build the foundation

Explore returns and corporate actions, value measures, and the required return builder.

02

Connect the models

Work with forecast construction, dividend discount models, free cash flow, discounted cash flow, and residual income.

03

Explain the conclusion

Use model reconciliation to examine different valuation results and the assumptions driving them.

An example learning activity

One company, more than one valuation.

Take a fictional company through dividend, cash-flow, and residual-income approaches. Reconcile the results by examining the assumptions rather than simply choosing the highest value.

  1. 1

    Set the forecast and required return.

  2. 2

    Compare valuation approaches.

  3. 3

    Reconcile the differences and defend the conclusion.

Try a two-minute example

Explore a decision with CapitalEQA.

Use fictional inputs to explore one concept. This short illustration is separate from the full product; access and demonstration availability are confirmed with CapitalWave.

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CapitalEQA interactive example

How much does one assumption matter?

A fictional company is expected to pay a $3 dividend next year. Explore a constant-growth dividend model by changing required return and perpetual growth.

V₀ = D₁/(k − g). D₁ is the next dividend. The model assumes constant growth forever and requires k > g.

Model value per share
$50.00
Required return less growth
6.00%

A narrower gap between required return and growth increases this model value, sometimes dramatically. A high output is a reason to scrutinize assumptions, not proof that a company is worth that amount.

This is not an observed share price. CapitalEQA helps learners compare valuation approaches and explain their assumptions.

See this with your learnersExplore sample activities and guides

A worked teaching example

Defend a dividend valuation assumption

25–35 minutes · Suggested activity time

Assumptions and task

Fictional dividend-paying company: next annual dividend D1 = $3; constant perpetual growth g = 3%; required return k = 9%. Repeat at k = 10%. Model assumes k > g and dividends represent the cash flows being valued.

Calculate value per share under both required returns. Explain the change and identify a business for which constant perpetual dividend growth would be a poor assumption.

Evidence to collect: Submit the two valuations, sensitivity explanation and one limitation of the model.

Illustrative expected output

Value at 9% required return
$50.00 per share
Value at 10% required return
$42.86 per share
Change in model value
−14.29%

A small change in the discount-rate spread can materially change model value. A model result is not an observed price or an investment recommendation.

Calculation or decision method

Constant-growth dividend value V0 = D1/(k − g). D1 is the next dividend, not the most recent dividend.

Fictional teaching illustration, prepared for evaluation. This is not an exported learner record or a claim that the exact activity is preloaded in the platform.

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Where it fits

  • Equity valuation courses
  • Analyst development
  • University finance programs
  • CFA® Program educators and candidates

Access and teaching arrangements

The current tool catalog includes nine implemented tools. Additional company-analysis and relative-value tools are planned. Contact CapitalWave to explore the current release.

Discuss learner numbers, course timing, instructor requirements, and licensing with CapitalWave. Product access is handled by the individual platform.

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Questions and answers

Frequently asked questions

What does CapitalEQA help learners practice?

CapitalEQA is the Equity Analyzer. It connects required returns, forecasts, dividend and cash-flow valuation, residual income and model reconciliation using fictional company examples. Learners explain why model conclusions differ and defend the assumptions.

Related information

Why does a higher required return reduce a model valuation?

Holding expected future cash flows and other assumptions constant, a higher required return discounts those cash flows more heavily and reduces present value. The dividend-growth worked example shows this sensitivity. A model value is not an observed market price or investment recommendation.

Related information

Does the current CapitalEQA release include every planned tool?

No. The source-reviewed catalog has nine implemented tools; additional company-analysis and relative-value tools are planned. Public application access is not currently live. Confirm the release and tools available for a demonstration before relying on planned functionality.

Related information

Can CapitalEQA support university and CFA® Program subject practice?

Yes, its equity-valuation activities are relevant to university finance teaching, professional development and CFA® Program subject practice. That audience relevance is not a claim of Institute approval, an authorized preparation relationship or complete examination coverage.

Related information
Company and licensing FAQs

Your curriculum. A practical next step.

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Tell us what you teach, who you teach, and what you want learners to demonstrate. We will discuss platform fit and licensing with you.

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For education and training. The platforms do not execute real trades or provide investment advice. Exercises and automated feedback support learning and do not by themselves establish professional competence or confer certification.