This paper aims to test stock-price-explanatory power of the FO model by comparing it with tree different types of DCF. The FO and the DCF models are operationalized and a crosssectional regression analysis is carried out for the actual stock price and the equity value forecasted by each model. The adjusted R ² thus obtained is compared with each other. The empirical results show us that the FO model has much stronger explanatory power than any DCF model for any case and any term N, and deny a deep-rooted discussion about uselessness of accounting information in equity valuation. The FO model is improved by considering the unrealized holding gains and losses of securities held by firms. The improved model makes the coefficient β of equity value closer to the ideal number=1 with keeping the adjusted R ² at a satisfyingly high level.