Up_Yuner
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Monday, August 16, 2021
By Mia
You found me! Today's password is :"Short Sale Analysis"
By Mia
You found me! Today's password is :"Short Sale Analysis"
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Up_Yuner
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What is Discounted Cash Flow (DCF)?
Discounted cash flow (DCF) is a valuation method used to estimate the value of an investment based on its expected future cash flows. DCF analysis attempts to figure out the value of an investment today, based on projections of how much money it will generate in the future.
This applies to the decisions of investors in companies or securities, such as acquiring a company, investing in a technology startup, or buying a stock, and for business owners and managers looking to make capital budgeting or operating expenditures decisions such as opening a new factory or purchasing or leasing new equipment.
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Discounted cash flow (DCF) is a valuation method used to estimate the value of an investment based on its expected future cash flows. DCF analysis attempts to figure out the value of an investment today, based on projections of how much money it will generate in the future.
This applies to the decisions of investors in companies or securities, such as acquiring a company, investing in a technology startup, or buying a stock, and for business owners and managers looking to make capital budgeting or operating expenditures decisions such as opening a new factory or purchasing or leasing new equipment.
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Up_Yuner
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By Melody
A company's most important goal is to make money and keep it. When a company no longer has the ability to keep making money, its share price will drop significantly.
Does this mean we can only buy into companies with positive net income?
NO.
$Tesla (TSLA.US)$would be a perfect example. Tesla was listed in 2009, but the company didn't break even till 2020. Not having a positive net income did not stop Tesla shares from skyrocketing. This is because the share price does not simply reflect a company's net income, but rather its profitability.
...
A company's most important goal is to make money and keep it. When a company no longer has the ability to keep making money, its share price will drop significantly.
Does this mean we can only buy into companies with positive net income?
NO.
$Tesla (TSLA.US)$would be a perfect example. Tesla was listed in 2009, but the company didn't break even till 2020. Not having a positive net income did not stop Tesla shares from skyrocketing. This is because the share price does not simply reflect a company's net income, but rather its profitability.
...
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Up_Yuner : Short sale analysis