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IgnoranceIsBliss

11/20/18 12:53 PM

#161470 RE: HerbieRay #161468

Correct!

The discount factor works the other way as you move out in time, reflecting equity returns and the removal of uncertainties/contingencies.

So if you do a DCF with a 10% discount, and today's price is $50, in three years it's closer to $67.