Methodology

Fundamental Analysis

What is the formula for the discounted cash flow model?

Total assets + cash x total liabilities.
CF1 + (1+r) x CF2 (1+r) x CFn (1+r).
(CF1 x (1+r)) + (CF2 x (1+r)) x (CFn/(1+r)).
(CF1/(1+r)^1) + (CF2/(1+r)^2) + (CFn/(1+r)^n).

If an investor lends money to the government, what bills would they buy?

Total assets + cash x total liabilities.
CF1 + (1+r) x CF2 (1+r) x CFn (1+r).
(CF1 x (1+r)) + (CF2 x (1+r)) x (CFn/(1+r)).
(CF1/(1+r)^1) + (CF2/(1+r)^2) + (CFn/(1+r)^n).

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