Friday, March 11, 2011

Tweaking the Target Price

As you properly asserted in an older post, "the intelligent investors knows that tweaking the long term growth rate can lead to ANY value projection you want. The effect gets even stronger when the rate of growth used is close to the discount rate". The graphic below just visually shows this effect:

Under no circumstances does any article or opinion posted on this blog represents any kind of advice, suggestion or recommendation to buy or sell any security. We also do not guarantee the accuracy of any information contained in any posting on this blog.

Related Posts

0 comments:

Post a Comment

We encourage your feedback and we will take your comments into serious consideration. However, you must be warned that any comment that does not follow the blog philosophy (Value Investing and Behavioural Finance) will be promptly removed.