The choice of the valuation model is also dependent on the stage of the life cycle to which the company’s operations belong to. Correspondingly, it is easier to apply the models of Dividend Discounting Approaches to mature companies, rather to the start-ups that are characterized by almost negligible dividend pay-outs. A model that is deemed to be applicable in all scenarios is the DCF approach. The model is flexible enough that facilitates its application to various companies in various stages of the life cycle (whether they are dividend paying or not). It is also suitable for companies that have diversified business lines. Yet, the complication lies in its necessity of providing various estimates which are inputted in the model so as to arrive at the values of the true potential of the security. On account of its judgmental behavior, this model yields various estimates as and when it is applied by various analyst groups (Platt & Platt, 2009). This model facilitates to account for the cash flows at various time periods, and is a method aiming at valuation over a multi period time horizon. Besides this, it accounts for cash flows, instead of earnings, which is beneficial as earnings are highly susceptible to manipulation (as was evident in the case of Enron). Cash flows are less susceptible to manipulation and thus provide reliable estimates of the value.
Analysts have also come up with various other innovative models which focus on determining the value of the equity of the company and adding the market value of debt in order to obtain an estimate of the total value of the firm (Security Analysis, 2011). The market value of debt is easily observable from the term structure of interest rates, but the value of equity cannot be ascertained easily. Thus, to improve the accuracy and robustness of the methods of equity valuation, option pricing models are applied in which the equity of a company is valued as per the payoffs of the call option, in which the underlying security is the firm’s asset base and the call option’s exercise price is the value of the company’s debt. Moreover, as analysts aim to value private companies and securities which are not frequently traded, models based on relative valuation approaches are generally used.
估值模型的选择还依赖的生命周期，该公司的业务是舞台。相应地，它是更容易申请股利贴现模型方法的成熟的公司，而这是几乎可以忽略不计股息支付的公司。一个模型，被认为是在所有情况下适用的折现现金流量法。该模型具有足够的灵活性，便于应用在生命周期的不同阶段，不同的公司（不论是股利支付或不）。它也适合于有多元化的业务公司。然而，并发症是其提供的各种估计输入的模型，以达到安全的真正潜能的价值观的必要性。对其判断的行为，该模型产生的各种估计，当它是由各种分析师组应用（普拉特&普拉特，2009）。该模型有助于解释现金流在不同的时间段，是针对在多周期时间评估方法。除此之外，它占的现金流，而不是盈利，这是有益的盈余操纵高度敏感（如明显在安然事件中）。现金流量不易操作，从而提供可靠的估计的价值。
分析家们也提出了不同的创新模式，专注于确定公司的股权价值和增加债务的市场价值来获得公司的总价值估计（安全分析，2011）。债务的市场价值是很容易从利率期限结构的观察，但股权的价值不能确定地。因此，提高股权价值评估方法的准确性和鲁棒性，期权定价模型的应用中，一个公司的股权价值为看涨期权的收益，在底层的安全是公司的资产基础，看涨期权的行权价格是公司债务价值。此外，分析师目的价值私人公司和不频繁交易的证券，基于相对估值方法模型通常用。
