How to project the future when valuing companies
One of the challenges when valuing companies is projecting the future performance. My trick to do this is to assumed that the future = the past.
Based on my understanding of the company and sector, I then judge whether the future is the same, better or worse.
I then use the past 10 years performance to value the business. If I get a margin of safety based on this, I would consider it very safe if I had judged that the future is either the same or better than the past.
Of course if there is no margin of safety, I look for another company.
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I am looking for feedback/review on the book. I am prepared to provide a pdf version free in return for the feedback and/or book review. If interested email me at i4valueasia@gmail.com
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