ValuationbyAD1 (Why valuations fail? (Coz considered as science (Estimates…
Why valuations fail?
Preconceptions (if yes then valuation follows)
Who pays for the valuation excercise
Coz considered as science
Estimates comes with uncertainty
Building big models
Longer the period better it is
PV of Future CF
Comparable assets in the market
Control for differences
Based on contingent event
valuing businesses with option like models
Contingent payoff for limited time
Market makes mistakes
Mistakes get corrected over long time
Markets are right on average but wrong on individual companies
Why you do valuations?
They must know something that I dont know? of valuation!
Proud - Momentum Investors
Yogi - Smarter than Avg
Lifevest - Valuation is something to hold on to
Less is more for valuation