What type of companies can't be valued using the standard DCF model?
Just want to hearing other industry experts' opinions on what types of companies are not value-able using the standard DCF model (FCF-based). Currently I have the following:
- Banks (driven by loans/deposits)
- Insurance companies (driven by written premiums and claims)
- Private equities/other balance-sheet-based financial companies (driven by proprietary investments)
- REITs (driven by property assets)
- Business development companies (driven by value of portfolio companies)
- Biopharma (can't assign terminal value to patents, need multiple DCF to value different drugs)
- Mining (finite value dependent on individual mines)
- Oil & gas (finite value depended on oil/gas reserves)
- Utilities (regulated ROI)
Are these correct and are there any other type of companies that can't be valued using the standard DCF model?
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