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Art of Boring

The art of discount rates | EP122

23 Nov 2022

Description

How do investors figure out what a company is worth? (Especially in a higher inflationary and interest rate environment?)   Highlights Why doing a qualitative assessment of each company is our first filter How we try to determine valuations without missing the actual fundamentals (e.g., Trisura and Kinsale) and why valuation is only one input in the investment decision-making process When DCF modelling can actually help us better understand the drivers of the business—e.g., Colliers—and also some of its pitfalls Choosing the right discount rate—why it's more art than science and how we try to ensure consistency across the platform

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