How To Select The Optimal Valuation Method To Build Better Price Targets [Part 3]

How To Select The Optimal Valuation Method To Build Better Price Targets (Part 3 Of 3) by The Finance Professionals' Post

[buffett]

This 3-part post is all about following best practices for selecting the optimal valuation method…namely the one that’s going to derive a price target more accurate than consensus.

As noted in Part 2 of this 3-part series, there are limitations to every valuation method, but some are better than others. For years I had been looking for an information source that quickly summarized the best method(s) to use under each circumstance, but couldn’t find one. So I created the flow chart below.

The idea is to start at the top of the flow chart and work your way down as...