Discounted Cash Flow (DCF) is the best method to valuate stocks. Future cash flow is discounted to the present day. P/E ratio only shows PAST performance. Some use forward P/E ratio however it is incorrect. The correct method is DCF.
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Michael Bigger is an investor and a trader who has been involved with trading technologies for more than twenty years. He runs the Bigger Capital Fund, LP and he manages money for many institutional investors.
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