The dividend valuation model values equity by estimating the present value of future cash flows to shareholders, typically dividends, discounted back at the required rate of return. In its classic form, the model assumes dividends continue indefinitely and therefore discounts an infinite stream of expected future dividends, making it a perpetual valuation approach. Where dividends are expected to grow at a constant rate, the model is commonly expressed using a perpetuity-with-growth structure, linking the theoretical share price to next period’s dividend, the required return, and the growth rate. The key exam point is recognising that equity value can be framed as the discounted value of cash flows to shareholders over an indefinite horizon. Net asset value is an asset-based valuation, often used for funds or asset-rich firms, not an infinite cash flow discounting model. Market value added and economic value added are performance and value creation measures linked to capital employed and cost of capital, rather than a direct share pricing model based on discounting dividends forever. Therefore, the description aligns to the dividend valuation model.