I think it should be valued on discounted cash flow of next 5 years. Following are the reasons
1- No surprise in this type of securities so valuation can be accurate.
2- Cash transactions can be easily predicted.
unlike other equity shares where one big contract can make stock to run up 100% or 200%.
and stocks drops when any CEO leaves a organisation. I think this company is predicable and can be run on set of rules decided by this company. We don’t need heroic CEO and unpredictable cash flow is eliminated.
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