Intrinsic valuation analysis is a common technique used by sell-side and buy-side analysts and portfolio managers. Discounting cash flows is a relatively easy mathematical concept, so one might think the technique is easy to apply. If the math is straightforward, why do analysts analyzing the same company disagree on the value of a stock? Intrinsic valuation analysis is a common technique used by sell-side and buy-side analysts and portfolio managers. Discounting cash flows is a relatively easy mathematical concept, so one might think the technique is easy to apply. If the math is straightforward, why do analysts analyzing the same company disagree on the value of a stock?

Choose which statements apply.

-They do not have access to the latest financial statements.

-Some people are optimistic, and some are pessimistic, affecting their valuation work.

-They use different cash flows.

-The market price is not accurate.

-They disagree on the appropriate discount rate.

Answer rating: 100% (QA)

Several factors can contribute to analysts analyzing the same company disagreeing on the value of a ... View the full answer