Sticky this

>>1884657

What are you on about?

>>1884948
A company is worth the discounted sum of its cash flows from today until eternity.

>>1885067
but how do we predict it's cashflows into next year? let alone eternity?

Why do you hate industry multiples? And where is the fountain of youth that you've found?

>>1885075
That's the hard part. We have to gather a lot of information and interpret it correctly. The individuals or groups who manage to come the closest with their approximations of future cash flows without going bankrupt or suffering adverse legal outcomes are going to be the winners.

>>1885067
>A company is worth the discounted sum of its cash flows from today until eternity

50 years is sufficient to value a company. At that point and deviation would be negligible.

>>1885082
You have to accept the lines drawn by an unappointed arbiter who put certain companies in certain industries. I suppose you can try to draw your own lines and make your approximations even more accurate.

>>1885137
We have to accept our limitations in forecasting future cash flows unless there are breakthroughs in cash flow analysis we cannot predict today.

p.s. For people who don't get why it's called "discounted". Think of it as the opposite of "accrued interest". When you buy a company you have to pay the CURRENT DAY price. So we have to discount the FUTURE DAY price.

>>1885158
Interest rate and discount rate are TWO SIDES OF THE SAME COIN.

>>1885105
Gimme some metrics to look for.

Actually, I found a great book by one of Warren Buffet's ex-daughters-in-law that listed all the ratios he looks for in financial statements. Very non-technical explanation too, you don't need to have studied accounting to get it. Can't remember what it was called, something like
>How to Read Financial Statement Like Buffett

It also explains the key differences between Ben Graham and Buffett

>>1886042
Compare long-term debt to total assets. Is the company growing and repaying debt? Why not? Are there justifications for not reducing long-term debt? A new revenue stream?