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Discounted Cash Flow

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  1. #1
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    Question Discounted Cash Flow

    I'm working on a Discounted Cash Flow analysis and I think I've done more bad than good. If anyone could tell me if I'm on the right line or provide a little feedback I would greatly appreciate it. I'm stuck on how to calculate the margin of safety without a prior stock price...?

    Thanks in advance!!
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  2. #2
    Administrator 6StringJazzer's Avatar
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    Re: Discounted Cash Flow

    Since you're 8 hours into this with no replies, I took a look. Your Excel file is somewhat unique in that it has like 40-50 numbers and no formulas. It's impossible to tell what you're trying to do unless we happen to be taking the same class as you (I take it this is for a class).

    What is the raw data that you started with as the problem statement?

    How are you doing your cash flow analysis?

    To calculate margin of safety, you need to know the intrinsic value of the company, which is not going to come from prior stock price. How are you supposed to determine that?

    I'm not a finance guy. I understand cash flow analysis but I don't understand most of the parameters you're showing here, like Beta (although I know it's a stock analysis metric). So I will be of limited help.
    Jeff
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