Is this calculated anywhere on Stockopedia or is there help on using the data here to do that?
Many thanks
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Is this calculated anywhere on Stockopedia or is there help on using the data here to do that?
Many thanks
Hi Elly. There used to be a dcf calculator on the old site but that is now closed. I believe it is being considered for new site. When i was on you tube the other day I found a brief ten minute video on how Warren Buffet calculates "intrinsic value", a DCF on free cashflow.
Within the video the commentator showed his simple excel model and showed where he got the inputs from google. All very simple. I suggest you have a look. He also mentioned he was happy to share spreadsheet.
Good luck Greyster
Thanks so much for your help greyster.
I've watched a couple of longer videos but it's not long before I get stuck.
I'll go and look for Warren Buffet's video now.
Really hope Stockopedia bring back that calc, sounds like exactly what I need.
Elly
Even if you know how to calculate it or, more likely, have a built-in calculator like the one on Sharepad, a DCF depends on the input of important variables like the discount rate and the level of sustainable FCF growth - far more than on existing forecasts for cashflow. Small changes in either will dramatically alter your valuation. It makes sense to treat the discount rate as a "hurdle rate" fixed for all analyses rather than use the company's WACC as then you can compare all companies by the same benchmark. However, the sustainable growth rate will vary according to the nature of the business so it makes less sense to go with a GDP-derived number.