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\subsection{Some remarks on the Cash-Flow based valuation model}  \\  Our equation linking $\frac{EV{IC}$ with the $ROIC$ and the $WACC$ is completely in line with valuation models and concepts such as EVA. The idea is the same : value is created when a business is able to earn more than its cost of capital ($ROIC > WACC$); in this situation, the market value of a business warrants a premium relative to its book value. Just as we did for the $DDM$, the $DC$F can be transformed and simplified in order to take into account growth dynamics in a very simplified manner. For example, a $FCF$ version of the Gordon Growth Model ($GMM$) would look like :  \begin{equation}  P_{t}=\frac{D_{t+1}}{R-g}  \end{equation}  Or,  \begin{equation}  P_{t}=\frac{\rho E_{t+1}}{R-g}  \end{equation}  By dividing both terms of the equation by the book value $B_{t}$ we get :  \begin{equation}  \frac{P_{t}}{B_{t}}=\frac{\rho ROE_{t+1}}{R-g}  \end{equation}  Where $\rho$ is the payout ratio. We can use the clean surplus accounting rule and replace $\rho ROE_{t+1}$ by $ROE_{t+1}-g$ where $g$ is the perpetual growth rate in dividends. We therefore have another version of the GGM based on the price-to-book :  \begin{equation}  \frac{P_{t}}{B_{t}}=\frac{ROE_{t+1}-g}{R-g}  \end{equation}