If a company expects a company to do very very well or very poorly in the upcoming months, how is this reflected in the DCF ?
For trading comps, it'd be reflected in the fact that the EV would either be very high or low depending on investor sentiment.
But because DCF is solely based on intrinsic valuation, is investor sentiment reflected at all in the valuation? Wouldn't the WACC change? (e.g. if a company is expected to not perform well, Cost of Equity would increase and/or Cost of Debt).
Thanks!
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