A Simple Valuation Model for Large Cap Stocks [View article]
I sure would not call this simple! Doubt you will get many readers on this site.
Very informative article. I have intuitively been suspicious about complex FCF discount models given their sensitivity to small changes. However they sure give you better insight into a company's IV that just a multiple. I have tried to translate what a multiple might mean in terms of ROIC and growth and then look to see if that is a reasonable assumption for the company.
You are a bit vague on how to get SEPS and the CRA. I will check out your website.
'AAA' Rated Companies: And Then There Were Six [View article]
A few comments: - I'll go out on a limb here, Freddie MAC is not AAA. In fact it and Fannie Mae are virtually insolvent save for Government support. You may be looking a certain trenches of their securitized debt which may be rated AAA. But the company is not, unless you think the US Gov will support all its paper.
- If Moodys downgraded Pfizer, then they ain't AAA anymore. I think you need both to be in the club. They took a big bite with Weyth
A Simple Valuation Model for Large Cap Stocks [View article]
Very informative article. I have intuitively been suspicious about complex FCF discount models given their sensitivity to small changes. However they sure give you better insight into a company's IV that just a multiple. I have tried to translate what a multiple might mean in terms of ROIC and growth and then look to see if that is a reasonable assumption for the company.
You are a bit vague on how to get SEPS and the CRA. I will check out your website.
Good article. Thanks
'AAA' Rated Companies: And Then There Were Six [View article]
- I'll go out on a limb here, Freddie MAC is not AAA. In fact it and Fannie Mae are virtually insolvent save for Government support. You may be looking a certain trenches of their securitized debt which may be rated AAA. But the company is not, unless you think the US Gov will support all its paper.
- If Moodys downgraded Pfizer, then they ain't AAA anymore. I think you need both to be in the club. They took a big bite with Weyth
- Note that Fitch downgraded Berkshire from AAA