DDM/FCFF/FCFE firm valuation

Use DDM- Minority perspective

FCFF- cap structure instable, control perspective


My understanding is that you would use if for a minority position in a firm that does not pay a dividend.

You could use a number of other methods too, but if you want to use CF and you don’t have an influence on how to spend FCFF, you would use FCFE.

Incorrect. Both take control perspective. FCFF values entire firm. FCFE values equity directly.