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19-02-2022, 12:03 PM
There is really no 1 metric (or a few) that really works great in every situation. The nuance is in understanding what each method (and formula) represents, and to use it accordingly.
We will be better served by forging ourselves a swiss army knife rather than equipping ourselves with a hammer (and using it to hit every nail that we think we see)
A Primer On Valuation
Most of the valuation models I see are two types:
(1) The discounted cash flow (DCF) model, and
(2) Forward relative valuation model
The key difference between these two models is how they estimate the terminal value. When it comes to valuation, the most value (and lies) are ascribed to the terminal value.
“More fiction is written in Excel than in Word.” — unknown
https://steadycompounding.com/investing/valuation/
https://steadycompounding.com/tag/valuation/
We will be better served by forging ourselves a swiss army knife rather than equipping ourselves with a hammer (and using it to hit every nail that we think we see)
A Primer On Valuation
Most of the valuation models I see are two types:
(1) The discounted cash flow (DCF) model, and
(2) Forward relative valuation model
The key difference between these two models is how they estimate the terminal value. When it comes to valuation, the most value (and lies) are ascribed to the terminal value.
“More fiction is written in Excel than in Word.” — unknown
https://steadycompounding.com/investing/valuation/
https://steadycompounding.com/tag/valuation/