I remember reading once that Buffett doesn't use a DCF and most of his calculation just take place on the back of an envelope; yet what everyone else gets told to use DCF to come to an intrinsic value.
Is there a resource somewhere that outlines what the great investors like Buffett, Lynch and co use to valuate how cheap a company is.
As of me, so far I have used DCF, P/E Valuation and ROE and I just average. I know it is not great but that's how far I got. Would love to hear how you guys approach determining when a stock is cheap.
Submitted February 04, 2019 at 09:07AM by gymaliz http://bit.ly/2WCzdMV