just an additional commentdiscounted cash flow is based on...

  1. 14,217 Posts.
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    just an additional comment

    discounted cash flow is based on forecast earnings

    the forecasts are grounded in substantial stuff like the actual business eg quality of management, competitive position etc and the financial history eg ROE, earning growth etc

    once you abandon that method you are saying more or less that knowing the business will not help you to work out what a company is worth

    the only other alternative is to use charts or market forces to work out value

    the finance industry is in complete disarray now

    value investing is dead



 
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