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You seem to be approaching the problem the same way as you are theorizing a 'value investor' is. Both approaches require some amount of reliance on financial models as they currently exist. 'They' try to find the intrinsic value of a stock, by estimating, say, future dividend cash flows, and applying a discount rate. They then compare the 'intrinsic value' ...


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Is my proposed method wrong in any way? I feel the best answer is, yes, in fact as a straightforward matter many traders essentially completely agree with the thrust of the question: as mentioned, every parameter involved is: a guess concepts like "intrinsic value" can only be put in quotes † Again, yes, the fact is there are drastically ...


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You are correct that different discount rates will result in drastically different valuations. But there isn't one objectively true discount rate, but this is a personal preference. Some kind of discounting is always necessary because otherwise the value (= all future earnings) could be infinite. If it is not represented explicitly, other assumptions will ...


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