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DCF/Comps Weights...how do justifiy subjective decison?
TL;DR - tried tweaking DCF to make it more optimistic but cannot honestly justify tweaks. Resorting to arriving at target share price with DCF /Comps weight - don't know how to justify/explain my decision for 60% DCF 40% Comps. Need some guidance. I've built a thorough DCF and comps model from...
How is a DCF based on assumptions?
I understand how to walk through a DCF and I know that one of the cons of a DCF is that it is based on assumptions. But what are the assumptions? All of the things you need to find have formulas for example, FCF , WACC , Terminal value, EV . I don't get what is being assumed.
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