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.
Technology Stocks : Dell Technologies Inc. -- Ignore unavailable to you. Want to Upgrade?


To: Chuzzlewit who wrote (132479)6/11/1999 10:16:00 PM
From: Tomato  Respond to of 176388
 
I didn't think the Buffett (or whatever the right name of the NPV approach is) was an absolute value method but rather used projected growth rates, factored in a discount rate based on the US long bond, guessed at a future p/e ratio, and voila! - it gave an estimated future value. Maybe I don't understand your use of "absolute?"

I guess a major problem I have with any estimates of value is I find it hard to believe that anyone can accurately estimate future growth, interest rates, bond rates, or anything else for that matter. My understanding is that analysts are (in)famously off in their earnings estimates for a one year period and those estimates get worse the longer out they go. Do you feel confident that Dell can maintain a certain growth rate for a given period of time?