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charting instrinsic value
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11:21 pm
July 4, 2010


Jae Jun

Admin

posts 1336
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Yes it does make sense and I know what you are referring to but that is the trade off for an automated calculation.

There just isn't enough data to calculate the growth rate for each year and then to graph it accordingly.

11:57 pm
June 30, 2010


mals

Member

posts 14
1

isn't that intrinsic value vs price chart somewhat misleading?

let me explain – if the company saw high level of growth from 2001 to 2010, the charted intrinsic value of a company in year 2001 could appear to be far higher than what we would have projected in 2001 . 

 

not saying that older intrinsic values (using DCF method) should be calculated and projected the same way as current year projection, but simply saying that the chart of intrinsic value vs price in the appears misleading if the company past growth is high (and if future projections are more normal).

 

make sense?
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