What is the best valuation technique for investing in stocks with a 3+ year investment horizon?
It is easy to use a DCF for a short term price target because you are looking at what the price is now vs what it should be for a potential immediate discount. However, a DCF shows what it should be worth today, not what it should be worth 3 years from now. Therefore, are multiples your best bet? What methods are ideal in this situation?
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