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Hi, DCF models are not very effective when a company is cashflow negative. That can result in weird looking values. On the last tab of the model you can switch
by trevzercap 2y ago
Hi, DCF models are not very effective when a company is cashflow negative. That can result in weird looking values. On the last tab of the model you can switch the exit multiple to look at EV-Sales which will work better on a cashflow negative business like Boeing. Doing this with the model defaults results in a value of $149. Thanks for checking it out!