Please Don't Make Fun of Me

Please don’t make fun of me, I’m 24 playing catch-up in finance, but I am in love with Net Present Value. I learned about it six months ago and I think it’s great. Is it still the leading technique for project analysis? or even a leading technique? I’m sure what I learned was the very basic building blocks of the NPV, but is that what’s used to evaluate projects these days? such as real estate investments, new equipment, stocks, public projects, or any other decision between one or more investment/cashflow opportunities?

again, sorry if this is newb

You should consider your motives for choosing finance. Judging by your username jpm "hedged"trading is a good fit.

Im sorry if this offended you.

what are you talking about

Other than computing a discount rate, what would hedging have to do with my NPV question? This forum sucks because it’s just 12-17 twats stroking eachothers egos… tough to get any straight answers without being told to give up on finance or some sarcastic joke that’s not even remotely funny… just my take

For project finance, NPV is still the primary method. There is also IRR, but it is not generally as good.

Figuring out the proper discount rate can be a challenge (usually it’s WACC, but even that requires some estimate of the cost of equity). Having reasonable projections on costs and cash flows is also a challenge.

Saying “I am in love with NPV” does sound a little strange, though, so if people are going to make fun of you, that’s like dumping bleeding flesh into a shark tank. :wink:

You wouldn’t know a "twat"if it sat on your face.

Wait, we’re not supposed to make fun of you, but you lash out over something that wasn’t even offensive to begin with?

I act out a lot

anyway, you guys can make fun of me. I chose the title to grab attention.

I love finding good stocks to buy, but to say that I love price multiples is going a bit too far. haha

Don’t you worry, you’ll do just fine on AF.

Stop trolling.

If you want to learn a little more on valuation, may I suggest googling for Damodaran’s website. There you find lots of material, the audio/videos for the actual MBA classes he does at Stern, and even a little app for IPhone/IPad that goes over some basics and allows you to try some valuation methods.

It’s all free, so the value is pretty good (lame pun intended)

what are your thoughts on Kim Kardashian?

Go Long?


Slight correction. She will get u long

When you’re going long Kim K, is your prespective top-down or bottom-up?

its not my go to method of analysis, but i like using NPVs to backup my original findings. Its a great feeling when NPV using conservative inputs confirms my original thoughts. cannot do it for all companies though. not worth creating intricate models

NPV does not back up anything…you input the assumptions in the NPV so technically speaking whatever your thoughts are is what you will get…

thats what im backing up frank, just making me feel better and another tool in convincing the boss that my thesis is correct.