Isn’t determining what the appropriate ev/ebitda or fcf yield or...

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Just_a_guy

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22/10/18

14:21

Post #: 36211209
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Originally posted by vic_wattle ↑

@madamswer

Ive been reading Roger Montgomery's book about value investing. In his book he details the valuation methodology developed by Graham, Buffet etc. As Im sure you are all over it, but for the benefit of others who may be interested, it basically uses ROE, payout ratios, required return and a series of tables to determine the value of the business. A key mantra of the book is that price does not equal value and that valuation methodologies that factor in the share price into their equations have that flaw.

Pe, ev/ebitda, free cash flow yields all are dependant on the share price. What valuation methodologies do you use that ignores the share price to determine the value of a business?

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Isn’t determining what the appropriate ev/ebitda or fcf yield or pe the key to intrinsic value? This determination depends on what else is available both in equities, the risk free rate, inflation etc. It’s all relative.

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Isn’t determining what the appropriate ev/ebitda or fcf yield or...

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