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Layer 4 · Professional CertificationsCFA® Level 2Exam: CFA Institute

CFA® L2 — Equity Investments

Equity valuation models — DDM, FCFE, residual income, market-based — applied to actual companies. Item-set heavy.

50 hours of content1 chaptersFree during Phase 1

Quick info

Layer
Professional Certifications
Track
CFA® Level 2
Estimated hours
50 hrs
Chapters
1
Exam body
CFA Institute
Cost on Trustner
Free
Full course material live

Every chapter below has Foundation, Deep Dive, and Advanced material — read in any order, expand each chapter to see the full content.

About this course

CFA L2 Equity is heavily weighted (10-15%). Focus: equity valuation models — DDM, FCFE/FCFF, residual income, market-based multiples. Item sets test model selection, input estimation, and sensitivity analysis.

Who this is for

  • CFA L2 candidates.
  • Equity research analysts.
  • Active portfolio managers.

What you'll learn

  • Industry and company analysis
  • Discounted dividend valuation (DDM, Gordon, multi-stage)
  • Free cash flow valuation (FCFE, FCFF)
  • Residual income models
  • Market-based valuation — P/E, P/B, EV/EBITDA
  • Private company valuation

Course material — 1 chapters

Each chapter offers three tiers — Foundation for the core concept, Deep Dive for worked examples and practitioner depth, and Advanced for edge cases and exam tips. Click any chapter to expand.

  1. 1
    Reading 1

    DDM and FCFE/FCFF — discounted cash flow valuation

    • Gordon growth model
    • Two-stage and three-stage DDM
    • FCFE definition and projection
    • FCFF and unlevered DCF
    • Discount-rate selection (CAPM, build-up)
    ✓ Full chapter — read, examples, FAQ, MCQs

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