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For years, we have wondered how Warren Buffett valued Coca-Cola, (KO), stock at such a deep bargain in 1988. This book describes a simple two stage discounted cash flow model that delivers a close approximation. This exercise is our quantitative estimation of Coca Cola's Intrinsic Value Per Share in 1988. First, we describe our 2-stage "discounted cash flow" valuation model. Our estimating model is strict. It assumes a business will only "live" for 20 years. Within the model, we apply compounding growth to the first 10 years. Then, we assume a lower growth rate for years 11 till the end of…mehr

Produktbeschreibung
For years, we have wondered how Warren Buffett valued Coca-Cola, (KO), stock at such a deep bargain in 1988. This book describes a simple two stage discounted cash flow model that delivers a close approximation. This exercise is our quantitative estimation of Coca Cola's Intrinsic Value Per Share in 1988. First, we describe our 2-stage "discounted cash flow" valuation model. Our estimating model is strict. It assumes a business will only "live" for 20 years. Within the model, we apply compounding growth to the first 10 years. Then, we assume a lower growth rate for years 11 till the end of year 20. Since intrinsic value is a highly subjective figure, readers can adjust their model to the quality of the business they wish to value. This book also describes the Warren Buffett secret of "Yield On Cost" when investing in a high quality business bargain.
Autorenporträt
The author stated that his research was greatly assisted by the use perplexity.ai and his multiple years of reading Warren Buffett's Letters To Shareholders.