DCF Valuation I

[@ogduck461]

Sorry to say but DCF models are absolutely useless, the textbook way of investing never will generate alpha in the long run. Say your model gives you a valuation that the stock is worth $50, it doesn't mean shit to other market makers as they aren't using your model. The market doesn't correct based on DCF models, it corrects based on changing sentiment. If you ran a DCF model for APPL in 2017 then it would tell you they are losing revenue y/y.

[@stevel2037]

I don’t disagree. Forecasting free cash flows is more artistry than science (as is assumptive financial mode building as a whole). That said, this is an important benchmark to understand if only from the perspective of seeing how ridiculous some of the growth assumptions may be.