RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:NoShort - The Bottomless fool, The Tree Planter....Not at all, and that just underlines how little of this you understand.
You can use either current cash flows, or future cash flows. Depending on which you choose, then you can adjust the multiple accordingly. Quite often, multiples are based on comparables and you use the same basis of EBITDA that was used to calculate the multiple on those comps.
Again, you need to better understand equity value, versus enterprise value, and how capital structure plays a role in the calculations. You don't seem to have your head around this yet.
Just remember that the value of a company overall is independent of how it is financed (leaving aside bankruptcy risk for the moment). After you calculate the value of the company, then you calculate how much of that value belongs to whom.
You keep getting the concepts of equity value and enterprise value mixed up.
You are right, though. Your counterpoints aren't real dragons...more like mosquitoes.
Noshortsallowed wrote: So you acknowledge that when we use PRESENT cash flow amounts we aren't using FUTURE cash flows and discount from their (which essentially doesn't) account for future growth. You also acknowledge that you discount for debt but not for assets (and since their assets are double the amount of their debts - should we not be ADDING hundreds of millions rather than subtracting as you do in your calculations?). You also seem to acknowledge that the muliple assigned usually indicates a healthy buy.
slayed dragons? Please give me a break. You are so full of yourself.