deletions | additions       diff --git a/introduction.tex b/introduction.tex  index c6d0582..0426fb1 100644  --- a/introduction.tex  +++ b/introduction.tex 
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\\  \\ The purpose of this working paper is to show that it is perfectly feasable to adapt the Profitatbiliy-Valuation framework so as to hinge it on a firm's cash-flows instead of earnings. Using cash-flows has several advantages: first of all, it allows us to avoid the debt caveat. Secondly, by using cash-flows when valuing a firm, practitioners adopt a more entrepreneurial attitude towards stock valuation; typically, a private equity firm or any type of firm that wishes to value a potential target will do so by discounting cash-flows instead of earnings or dividends.  \\  \\The paper is organised as follow. First section recapitulates theoretical and empirical findings in Pierre and al. regarding the link between \textit{DDM}, \textit{RIM}, \textit{PB-ROE}, and how to combine financial screens and fundamental analysis when using the Profitablity-Valuation framework. In the second section, we show how to adapt this approach to cash-flow based valuations measures; links between Profitablity-Valuation screens, fundamental analysis and Discounted Cash-Flow (hereafter \textit{DCF}) valuation are also explicitly described. In this section we also show how a cash-flow based Profitablity-Valuation framework is in fact identical to the Economic Value Added (hereafter \textit{EVA}) which is also known as Residual Cash-Flow and thus comparable to Residual Income.  $V_{t}=\displaystyle\sum_{i=1}^{K}\frac{C_{t+i}}{(1+R)^i}+V_{t+K}$