SGH 0.00% 54.5¢ slater & gordon limited

I'm sorry but I'm not wasting my time building a black box DCF...

  1. 1,276 Posts.
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    I'm sorry but I'm not wasting my time building a black box DCF for a company that is about to go through the rinser. There is no point and the fact that you think you know what a DCF is let alone think it is appropriate to use here says a lot.

    Happy to explain why but don't presume you know the value of my time or how best to apply it.

    On the mobile so can't give you a lengthy explanation but in short you will have issues with coming up with reliable inputs for an appropriate discount rate, growth rates to grow future cash flows by and to calculate a terminal value. However happy to hear your suggestions for inputs seeing as you think it's appropriate here and a quick and easy exercise?? No? I didn't think so.

    I'm reluctant to post wiki/investopedia links but here is an okay summary of DCF pitfalls and why irrespective of accounting for extraordinary one offs like pip expenses are the least of your problems.

    http://www.investopedia.com/articles/07/dcf_pitfalls.asp
 
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