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Article: Luster matrix goes beyond DCF for true valuation. (Don't go with the Flow).(discounted cash flow model )
- Article from:
- Buyside
- Article date:
- February 1, 2002
CopyrightCOPYRIGHT 2002 M2Media360. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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One of the most popular valuation methods on Wall Street is the discounted cash flow model (DCF); however, The Abernathy Group has found a way to improve upon the model so that valuations are more accurate. The assumption behind the DCF model is that a business is worth the present value of its future profits or cash flows.
The difference between the DCF valuation and the current stock price will determine whether or not a stock is over or undervalued. The Abernathy Group believes that the DCF model is more often than not inaccurate because it requires the investor to accomplish impossible tasks including predicting 10 years of financial performance and placing a ...
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Article: Abernathy Gets a New Software Analyst
Daily News;
January 31, 2002 ;
305 words
... ... David Mahoney was hired as the lead software analyst for The Abernathy Group, an investment adviser that manages a long/short hedge ... sector," he said in a statement. "I also appreciate The Abernathy Group's focus on long-term investing based on deep analysis ...
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