6 Comments
 

People really over hype DCF.

Steps: 1) project out statements 2) calc FCFF 3) calc terminal value (GG or multiples) 4) calc discount rate (WACC) 5) discount cash flows 6) rejoice, you've now built a tool which few people put any weight on

"After you work on Wall Street it’s a choice, would you rather work at McDonalds or on the sell-side? I would choose McDonalds over the sell-side.” - David Tepper
 
BTbanker Oreos:

People really over hype DCF.

I know, it's crazy. I just take EBIT and multiply it by (1.2^5). Sometimes I just guess.

haha :) I think OP just needs it for some school project.

I'm talking about liquid. Rich enough to have your own jet. Rich enough not to waste time. Fifty, a hundred million dollars, buddy. A player. Or nothing. See my Blog & AMA
 

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