Yep. He’s revealed in vague passing some guidelines for, say for instance, a discount rate to use, but it’s vague enough only to use as a rough estimate such that you arrive at a possible ballpark.
It also doesn’t help that DCF calculations are incredibly sensitive with respect to interest rates that had for some time been historically low.
It might be easier to calculate these days, but my findings from years ago informed me that these issues were beyond reading financial reports.
There’s a bigger problem of there simply just not being enough attractive companies at even fair rates.
Statistically, you can only buy earnings at so high of a price to meaningfully make a worthwhile return, and for a while now, those prices have been too high in comparison to the risk free rate.
I’m sure this has since changed due to current interest rates, but I haven’t bother to look simply because of the first problem.
It also doesn’t help that DCF calculations are incredibly sensitive with respect to interest rates that had for some time been historically low.
It might be easier to calculate these days, but my findings from years ago informed me that these issues were beyond reading financial reports.
There’s a bigger problem of there simply just not being enough attractive companies at even fair rates.
Statistically, you can only buy earnings at so high of a price to meaningfully make a worthwhile return, and for a while now, those prices have been too high in comparison to the risk free rate.
I’m sure this has since changed due to current interest rates, but I haven’t bother to look simply because of the first problem.