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There are many ways to value equities. You can use charts, candlesticks, discounted cash flows, EVA, relative valuations, liquidation value ouija boards, and the list goes on.

What we would like to do here is look at ways to value companies using methods that fall into the value investing universe

Of most interest is the discounted cash flow—or DCF.

The DCF can be as simple and mindless as plugging numbers into a black box and having it return a value or so mind-bogglingly complex that you lose your way half way through and better hope you laid down a bread crumb trail the birds didn’t eat to find your way back. It would be nice to find a path in between—

Sufficiently complicated to make us look at every company inside out

Not so complicated that we are reduced to debating over decimal points to thousandth percent and lose our way in meaningless minutiae

We are setting up yet another in the millions of public boards here at TMF. We decided not to use the valuation boards at the premium content sites since we hoped for cross cultural interest accessible outside the walled gardens of the newsletter boards.

What we would like to do is take real companies and subject them to as much value prodding and poking as we are capable, see what we come up with and in the process turn more esoteric corners of valuation into SOP.


Kit Kat - thanks for getting this place going. One of top 5 Boards at the Fool.

RWS
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