The Motley Fool Discussion Boards

Previous Page

Learning to Invest / Valuation Strategies

URL:  http://boards.fool.com/i-am-new-to-dcf-and-probably-cant-add-much-but-i-29344909.aspx

Subject:  Re: Discount conundrum Date:  6/7/2011  11:46 AM
Author:  atta9508 Number:  1661 of 1668
I am new to DCF and probably can't add much, but I tend to use a similar approach Jack.

For Game Stop Here is what I estimate.

Cost of Debt: 7.3 (based on lont term bond rate plus an adder for the companies cost of borrowing based on bond rating

Cost of Equity: 11.3%

For the cost of equity I use the risk free rate + market rate. I adjust this with a Beta (bottoms up) based on debt/equity relative to other companys versus a global index fund (taken from Damdoran).

WACC: 9.5%

Can either of you point me in a direction to where I can compare my valuations to others. As I said I am new to this and still feeling out reasonable assumptions, and my approach. I have looked at wikiwealth, but not sure if I agree with everything they do. I am hoping to find a work group where people can post either outputs, inputs etc...to compare with others.

Thanks,

Jared
Copyright 1996-2013 trademark and the "Fool" logo is a trademark of The Motley Fool, Inc. Contact Us