Hi Friend,
DCF analysis is widely used in the investment communities. In fact, it is one of the most commonly used valuation method that you may see in analyst reports.
Do you know that you can perform a REVERSE DCF with TRV Stock Analyzer?
Before that, let's re-cap on DCF valuation:
REVERSE DCF Instead of starting with a given year’s FCF, and then projecting towards an unknown, the purpose of the reverse discounted cash flow is to calculate what growth rate the market is applying to the current stock price.
In other words, by working backwards, you can see whether the implied growth rate by the market is higher or lower than what the company is capable of.
Read on the link below to see how Reverse DCF valuation is done in the analyzer: |