Myth 5.1: If you don't believe in forever, you cannot do a DCF
aswathdamodaran.substack.com
If you are not interested in intrinsic valuation and feel that discounted cash flow valuation (DCF) is a waste of your time, you may want to skip these next few posts, which continue a series that I started more than two years ago on myths that surround DCF. While these posts may strike you as esoteric and perhaps even obsessive, I wrote them for two reasons: these misconceptions lead to time-wasting debates among analysts and they have economic consequences, costing business owners, investors and taxpayers large amounts of money. In these next few posts, I focus on the terminal value, which is, by far, the largest single cash flow in any discounted cash flow valuation. As a consequence, it is not only the number that causes the most disagreement among analysts but it also remains the source for the most egregious errors in valuation.
Myth 5.1: If you don't believe in forever, you cannot do a DCF
Myth 5.1: If you don't believe in forever…
Myth 5.1: If you don't believe in forever, you cannot do a DCF
If you are not interested in intrinsic valuation and feel that discounted cash flow valuation (DCF) is a waste of your time, you may want to skip these next few posts, which continue a series that I started more than two years ago on myths that surround DCF. While these posts may strike you as esoteric and perhaps even obsessive, I wrote them for two reasons: these misconceptions lead to time-wasting debates among analysts and they have economic consequences, costing business owners, investors and taxpayers large amounts of money. In these next few posts, I focus on the terminal value, which is, by far, the largest single cash flow in any discounted cash flow valuation. As a consequence, it is not only the number that causes the most disagreement among analysts but it also remains the source for the most egregious errors in valuation.