SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Strategies & Market Trends : Value Investing

 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: Graham Osborn who wrote (57709)8/7/2016 3:12:03 PM
From: bruwin   of 78673
 
Personally I have very little, if any, faith in DCF calculations, especially as one looks further and further into the future. Looking about 6 months to a year ahead for a particular company's performance is about as far as I'm prepared to go.

Trying to predict what the most important component of the DCF formula, namely its Interest Rate, is likely to be several years into the future is, IMO, wishful thinking at the best of times. And if you get that wrong then the calculation is worthless.
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext