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sn't DCF, discounting the future cash flows to the present, the same as how you defined instrinsic
value?


And herd, fearing that he has perhaps confused the issue, replies, "Yep". Intrinsic Value, Fair Value, and DCF Value seem to be about the same as I understand them. Some folks use different methods to arrive at their DCF/Intrinsic/Fair Value, but I think all of us are comparing a calculated value based on future earnings to current market pricing.

The key point here is that market pricing (contrary to EMT) may or may not reflect the future earning potential of the business in question.

Bruce
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