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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...
View ArticleMyth 5.2: As g-> r...To Infinity and Beyond!
In my last post, I started off by providing a rationale for a terminal value and presented alternatives to the perpetual growth model. That said, most DCFs are built with the the perpetual growth...
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Myth 5.3: Growth is good, more growth is better!
The perils of holding all else constant in perpetual growth equations and playing with individual inputs, not only leads to the use of impossibly high growth rates but also inflates the importance of...
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Myth 5.4: Negative Growth Rates forever? Impossible!
As you peruse discounted cash flow valuations, it is striking how infrequently you see projections of negative growth into the future, even for companies where the trend lines in revenues and earnings...
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Myth 5.5: The Terminal Value ate my DCF!
When you complete a discounted cash flow valuation of a company with a growth window and a terminal value at the end, it is natural to consider how much of your value today comes from your terminal...
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We provide evidence that lower fertility can simultaneously increase income per capita and lower carbon emissions, eliminating a trade-off central to most policies aimed at slowing global climate...
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