I’m building a DCF valuation model for my stock research platform and wanted some real investor feedback on it.
Current setup is something like:
- company classification (stable, cyclical, high growth, turnaround etc.) * different FCF logic based on company type * 3-tier growth model (years 1-3, 4-7, 8-10) * dynamic WACC * bear/base/bull scenarios * market implied growth calculation * sensitivity analysis
But I’m still trying to figure out what people actually care about the most while using DCF models.
Like what metrics do you trust the most? FCF growth? Revenue growth? Terminal growth? ROIC? Dilution? Margins?
And how do you assign weightage between bear/base/bull cases?
Would love to hear how you guys approach it instead of making another overly optimistic DCF calculator 😅