Comments on: Mohnish Pabrai DCF Calc http://iamamazing.wordpress.com Insights into Investing, Economics, and Politics Sat, 02 Aug 2008 21:06:06 +0000 http://wordpress.com/ hourly 1 By: Jack http://iamamazing.wordpress.com/monish-pabrai-dcf-calc/#comment-8478 Jack Sun, 30 Mar 2008 15:27:52 +0000 http://iamamazing.wordpress.com/monish-pabrai-dcf-calc/#comment-8478 This is a great framework - I would suggest one additional feature. Using only an exit multiple for terminal value may force one to rely on a relative value judgement (ie. where do other companies that also make widgets trade at). It mat be additive to use a perpetual growth rate and back into the implied exit multiple. This way a user of the model can i) determine the long term going concern cash flow profile of an enterprise (benchmarked against say GDP growth) and ii) rationalize that assumption against an implied multiple. This is a great framework – I would suggest one additional feature. Using only an exit multiple for terminal value may force one to rely on a relative value judgement (ie. where do other companies that also make widgets trade at).

It mat be additive to use a perpetual growth rate and back into the implied exit multiple. This way a user of the model can i) determine the long term going concern cash flow profile of an enterprise (benchmarked against say GDP growth) and ii) rationalize that assumption against an implied multiple.

]]> By: Edward http://iamamazing.wordpress.com/monish-pabrai-dcf-calc/#comment-8476 Edward Mon, 24 Mar 2008 10:43:25 +0000 http://iamamazing.wordpress.com/monish-pabrai-dcf-calc/#comment-8476 Hey thanks man, I really like how it can incorporate share repurchases and it's possible effect on share value. Hey thanks man, I really like how it can incorporate share repurchases and it’s possible effect on share value.

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