You can easily become a numerical klutz by assuming you have better numbers to calculate than the ones that are most commonly used across an entire field.
Tag Archives: Implied
DCF to Death.
You have to make assumptions if you’re unsure about the future prospects of a company. Just because you assert some perpetual growth rate, doesn’t mean it’s going to play out as expected. Even a margin of safety is a “I’m too dumb to know” boundary.
