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  1. #1
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    Default Bears for Newbies

    As a non-accountant I would like to know what is a reasonable parameter to use when evaluating shares in a Bear Market?
    Nowadays NTA is only useful for the non tech companies. Does DCF still provide a good guidance as to underlying value?

  2. #2
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    Default

    Quote Originally Posted by Jerry View Post
    As a non-accountant I would like to know what is a reasonable parameter to use when evaluating shares in a Bear Market?
    Nowadays NTA is only useful for the non tech companies. Does DCF still provide a good guidance as to underlying value?
    NTA in my opinion is never a good parameter to evaluate shares. I do believe DCF is the best method, however it comes with the most assumptions and you need to be able to predict cashflows into the future which is near impossible to do accurately.

  3. #3
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    Quote Originally Posted by blackcap View Post
    NTA in my opinion is never a good parameter to evaluate shares. I do believe DCF is the best method, however it comes with the most assumptions and you need to be able to predict cashflows into the future which is near impossible to do accurately.
    Not to mention coming up with some good guesses about future interest rates!


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