Replies to post #249218 on Biotech Values

[10nisman]

I did not comment on what to use to do DCF valuations. I just gave a fact that illustrates the comment that interest rates were moving up to 7% was by one metric already exceeded.

Clearly, the 7% relates to the risk-free rate and not mortgage rates. I assume the 7% jokers mentioned came from Jamie Dimon's comments from earlier in the week.

IMO the proper DCF rate is not as critical as using the same rate consistently for given time horizons.

The DCF rate needs to be in the right ballpark if you're trying to get to some realistic valuation.