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 (60771)5/3/2018 5:27:47 PM
From: Jurgis Bekepuris2 Recommendations

Recommended By
E_K_S
MCsweet

  Read Replies (2) of 78751
 
Graham,

I know where you are coming from, but if you have zero terminal value for a company after 10 years, then you'll likely never invest into any good/great company. No company will return to you its market cap within 10 years (even with zero discount rate). And since you're assuming zero terminal value, you have to expect actual dividend return of the size of the market cap, since company will be worth zero in 10 years.

I'm gonna turn around your argument: very very few companies are worth zero after 10 years.

So DCF terminal value is not as stupid as you think it to be.

But feel free to use conservative valuation methods, there's nothing wrong with that.

Best
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  

HomeMailHotSubjectMarksPeopleMarksKeepersSettings
Terms Of UseContact UsCopyright/IP PolicyPrivacy PolicyAbout UsFAQAdvertise on SI
© 2025 Knight Sac Media.  Data provided by Twelve Data, Alpha Vantage, and CityFALCON News