| User | Post |
|
8:02 pm
December 28, 2009
|
siamtwin
| | Thailand | |
| Member | posts 4 |
|
|
Thanks much, that did the trick.
|
|
|
12:28 pm
December 28, 2009
|
Jae Jun
| | |
| Admin
| posts 1336 |
|
|
Here's a tutorial on how to do it. Just depends on what excel you are using.
http://blogs.techrepublic.com……ice/?p=179
|
|
|
9:13 am
December 28, 2009
|
siamtwin
| | Thailand | |
| Member | posts 4 |
|
|
Thanks Jae. I see the hidden columns but I don't know how to disable the excel list – can you pls give me step by step instructions? sorry for the inconvenience.
|
|
|
3:21 pm
December 24, 2009
|
Jae Jun
| | |
| Admin
| posts 1336 |
|
|
If you look at the DCF tab, there are some columns hidden. Unhide those and then disable the excel list to just have it so that you can enter values manually.
|
|
|
7:56 pm
December 23, 2009
|
siamtwin
| | Thailand | |
| Member | posts 4 |
|
|
Jae,
I am using your spreadsheets for first time, so you may well have already explained this. If so, my apologies and just please point me in the right direction.
Is there a reason why you do not let user input own discount rate (i.e. choices are limited in 10 year spreadsheet to 3.75%, 9%, 15% and 20%)? I assume the 3.75% represents current 10 yr UST for risk free rate.
but the other choices necessarily limit the potential input of a user-defined equity risk premium. would you therefore be able to have a discount rate determined by a formula, ie current 10 yr UST (linked to database so always up to date) + use defined equity risk premium? i like to use 7-8% for US market risk premium , for example, so my current discount rate would be 11-12%, which i cannot input currently. thanks.
|
|
|
3:31 am
October 1, 2009
|
Jae Jun
| | |
| Admin
| posts 1336 |
|
|
No worries. Im glad you brought it up. The topic wasn't long enough for me to write a full post on it but I'm glad it helped.
|
|
|
10:12 am
September 30, 2009
|
FedoraJoe
| | |
| New Member | posts 1 |
|
|
Jae,
this was very helpful. thanks. Turns out that I apply the same rules. I have been using the spreadsheets to back out some of Morningstar's assumptions on valuations. Sometimes I get very close to their fair value out of the gate and other times, I find I am further off. This happens alot on commodity and energy producers. Thanks again!
FedoraJoe
|
|
|
12:08 am
September 30, 2009
|
Jae Jun
| | |
| Admin
| posts 1336 |
|
|
Received this email today regarding discount rates.
mind discussing your thoughts on rules of thumb for applying discount rates? Typically, the riskier the company’s cash flow performance, the higher the discount rate, but how do you think about about this rule when considering cyclicals? For example, a commodity producer?
Thoughts on this aspect of valuation?
I previously wrote about how a value investor understands discount rates. I.e. it is a number that determines how much emphasis you are putting on future cash versus current cash.
e.g. a 5% discount rate assumes that the company you are investing is predicatable and stable with high certainty so the future cash generated by the company is just as valuable as todays cash.
On the other hand, using a discount rate of 15% implies that the future cash of the company is unreliable and you are putting more emphasis on the present cash.
So what are my rule of thumbs?
1. Don't be picky about the discount rate.
2. For stable companies, I use 9%. For non stable or cyclic companies, I use 15%.
3. Use a 50% margin of safety for everything
|
|
Home
