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Discounted Cash Flow Analysis

Hello you very wonderful and amazing individuals that make up this forum. I sincerely hope you are doing well and having a pleasant week.

I know for instance for growth stocks like Amazon, various sites conduct a Discounted Cash Flow Analysis to get a Margin Of Safety with various stocks. They calculate this using 10 years worth of cash flow data. I please wondered if anyone knows any books or courses to learn how to conduct a Discounted Cash Flow Analysis please? I struggle to know where to get the relevant data from and how i can then get an intrinsic value from this calculation. If anyone kindly had any thoughts on this i would be forever grateful and thankful it would be highly appreciated.

Sending you lots of good wishes and i truly hope everything continues to go well for you and you have a wonderful life. Very best wishes.   

Comments

  • george4064
    george4064 Posts: 2,906 Forumite
    Part of the Furniture 1,000 Posts Photogenic Name Dropper
    https://letmegooglethat.com/?q=Discounted+Cash+Flow+Analysis

    Also, you could embark on financial qualifications such as CFA where you will learn about earnings/dividend discount modelling. But that requires a lot of dedication to complete, I’m sure information is available online (such as link above) where you can take a more light touch approach.
    "If you aren’t willing to own a stock for ten years, don’t even think about owning it for ten minutes” Warren Buffett

    Save £12k in 2025 - #024 £1,450 / £15,000 (9%)
  • As someone on the lemon dessert suggested - try the AI approach.
  • wmb194
    wmb194 Posts: 4,400 Forumite
    Part of the Furniture 1,000 Posts Name Dropper Photogenic
    edited 13 December 2023 at 9:46AM
    As someone on the lemon dessert suggested - try the AI approach.
    Oh, yes: https://www.lemonfool.co.uk/viewtopic.php?t=41047

    From a skim the consensus is not to bother and is my sentiment as well. The bottom up approach has some appeal because it gives you the feeling that you might be able to predict things with some accuracy but I came to realise it's often just GIGO and you can have exogenous events like unexpected changes to government policies that can trip you up as well.

    If you still really want to look into it you'd do better to try to find analyst reports where they've done it for you.
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