14-05-2013, 08:43 PM
(14-05-2013, 07:50 PM)CityFarmer Wrote:(14-05-2013, 06:59 PM)greengiraffe Wrote: DCF is the worst type of valuation yardstick and usually associated with bull mkt scenario...
GG
Well, i will go against the guru this round. DCF is the most reliable valuation IMO. Most of the over-valuations are overly optimistic on FCF projection.
I m a lousy student... all i know once the discount rates differ, valuations will go wild. How you derive the discount rates is more an art than a science.
During my analyst days, this is the last yardstick that I will adopt. PER on the other hand seems easier even though there are limitations.
GG