Hi Sauce, thanks for that link, very interesting. I have looked at buffet methodologies in the past, and found them pretty valuable, particularly just the simple concepts of having a defendable moat, catastrophic failure (Xero, I'm talking to you!) and not overpaying. My DCFs are generally (very!) conservative, and I use them to try and get more or less a worst case scenario.

I agree, the WACC is ... suspect, and potentially meaningless. My gut feeling is don't make it too low! I'm reasonably happy with the 7.7% because of RBDs low interest bank loans, and also because the rest of the valuation is very conservative in terms of growth.

I guess where I come from is: I'm not very good at this, so I need a big margin-of-safety before investing. Although RBD has had a big run-up, I still think it is pretty undervalued on a very conservative basis. Time (probably the next earnings release) will tell...

cheers
Greg