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Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: Jurgis Bekepuris who wrote (40835)	12/28/2010 12:04:49 AM
From: armi	Read Replies (1) \| Respond to of 78842

Bear with me, i'm still figuring this out. In regards to your minor issue, I am still figuring it out. 10 years if you are comparing it to a 10 year bond and 30 years for a 30 year bond but the numbers are different. I'm finding a solution for this still. I guess you answered yourself for the first major issue so i'll move onto the second major issue. Your arguement for the second major issue is valid. It felt wierd when I was doing it. Let me explain myself: The answer is a 'future cash flow'. At the current moment we keep hearing stocks trading for x times FCF. Future Cash Flow would be the equivalent to FCF and therefore we will also be required to pay a premium for the future cash flow for a particular company. There is always ways to scrutinize this calculation. I do feel the last steps are awkward but i'm looking for help to fix this. Thanks