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Technology Stocks : TLAB info?

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To: Pirah Naman who wrote (1794)12/23/1997 1:36:00 AM
From: Chuzzlewit  Read Replies (2) of 7342
 
Pirah, the problems with this valuation approach are:

1. The choice of discount rate. Surely, this should be risk-adjusted, so what risk premium should be applied?

2. The estimate of future cash flows is certainly problematic. Analysts get their estimates from the companies, and are therefore not disintersted parties.

So, after considerable thought, I've decided it's a pointless excercise.

Regards,

Paul
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