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Strategies & Market Trends : Gorilla and King Portfolio Candidates -- Ignore unavailable to you. Want to Upgrade?

To: Jurgis Bekepuris who wrote (43820)	6/22/2001 11:59:42 PM
From: Stock Farmer	Respond to of 54805

Jurgis On sensitivity of DCF to discount rate. Yes, it is THE most sensitive term. That and future growth rate of the company. More accurately, the difference between them. Obtaining the co's WACC is difficult. Some IR folks will give it out if you ask. Failing this, it is generally available to just about anyone in the company making a real business decision (it is the internal discount rate too!). So sometimes you can just ask these folks. My comment about balance sheet deterioration? Oh, that was in regard to my pet peeve "E" in PE. How it can be "adjusted" with an offsetting adjustment in the balance sheet. E.g inventories or AR and so on. I don't worry about catching the last of the up or getting in at the very bottom. Some old saying these are the most expensive dollars. Close, and on the right side, is good enough for me. John.