The accounting for operating activities differs from the accounting for financial activities. To an approximation, the accounting for financing activities is at fair value, whereas the accounting for operating activities usually uses the (amortized) cost basis. Additionally, the fundamental origins of risk must be rooted in a firm’s operations; most financing activities serve to attenuate operating risk, such as expanding operating activities by issuing more debt and adding leverage, or hedging operating risk by holding net cash and cash equivalents. In this chapter, we introduce a unified framework for forecasting operating earnings, valuing invested capital (or net operating assets), and determining the cost of capital at the enterprise level. Based on the intrinsic relationship between the value of invested capital and one-period ahead operating earnings, we can simultaneously estimate industry-level valuation parameters, including the weighted average cost of capital (WACC) and the expected long-term growth rate of operating earnings. This contrasts with conventional valuation analysis, which begins with forecasts of sales revenue. In an efficient market, macroeconomic conditions and industry trends are reflected in the current value of stocks, hence the value of invested capital. We can let the data reveal their intrinsic linkage, guiding the applications of machine learning in asset pricing. Using industry valuation multiples as proxies for individual firms’ valuation parameters, we can estimate synthetic valuation multiples to value an enterprise and evaluate an individual firm’s WACC.