Re:Stonks Are What You Can Get Away With: NFTs and Financial...
by JumpCrisscross on Sunday June 20, 2021 @02:57PM
(#27572914)
> Buffet doesn’t use DCF
There is DCF and there is
DCF. The full-formed DCF spreadsheet is a creature of sell-side fiction. The more trivial analysis—how much cash will this business throw off over the next few years and what is that worth to me–is not formally DCF by the modern definition. But theoretically, it’s the same thing. Just dispensing with the garbage that is terminal value estimation.
There is DCF and there is DCF. The full-formed DCF spreadsheet is a creature of sell-side fiction. The more trivial analysis—how much cash will this business throw off over the next few years and what is that worth to me–is not formally DCF by the modern definition. But theoretically, it’s the same thing. Just dispensing with the garbage that is terminal value estimation.