best way to present a DCF

Water Cooler Investing
#1

there’s a stock im bullish on … i think there is 50% upside… i can set up a DCF to have any price target based on inputs (LTg/WACC etc.))… here’s my question.

whats the best way to present the bullish outlook?

a) “my bullish case” showing arguably aggressive estimates to justify my price target

b) price out the market implied rates that finds intrinsic value at current price to argue that … its too cheap and these assumptions are to low

c) present a “base case” scenario that is the most realistic, shows upside but not as bullish as my own “50% upside”

I honestly like ‘b’… because even for people that are skeptical on the stock it shows that the market implied assumptions may be unrealistic. and commentary can explain why there’s upside.

#2

All 3

#3

If it’s for investing, I’d imagine that people would like to see some kind of estimated probability of each scenario, as well as some disclaimers on what assumptions might change your model.

#4

As well as show sensitivities of the inputs to your model.