Archive for 'Valuation'
Limitations of Financial Modeling
Posted on 10. Jul, 2011 by TheFreeInvestor.
If you have read any of the research reports from wall street firms, you will notice the use of financial models to estimate value of the firm and the target price for the stock. Financial models make us feel good and gives us the comfort in precise numbers and complex formula. The mathematical nature of financial modeling […]
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DLB Earnings Update: 2011-Q1
Posted on 22. Feb, 2011 by TheFreeInvestor.
In one of my previous posts, I wrote about my investment thesis for Dolby Laboratories (DLB). Recently, after the earning release of the first quarter of 2011, DLB stock price is down 15% to around $51-$52. What spooked the market was the downward revision of the revenue guidance for the year 2011 to $930 – […]
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Stock Valuation Flow Chart
Posted on 02. Feb, 2011 by TheFreeInvestor.
Even with all its shortcomings, discounted cashflow (DCF) valuation is one of the most widely used/abused stock valuation approaches. However, the plain vanilla DCF model needs a number of adjustments to be practically useful as a valuation tool. I captured the end to end process in this flow chart – (Note: Click on the image […]
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