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Learning to Invest / Valuation Strategies
|Subject: Re: Discount conundrum||Date: 6/7/2011 11:46 AM|
|Author: atta9508||Number: 1661 of 1670|
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).
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.
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