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Linn Energy, LLC (LINE) Message Board

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  • norrishappy norrishappy Jan 20, 2013 8:16 AM Flag

    Yawn

    Clearly you do not. What is the difference between ebitda and DFC? What is the actual adjustment which be made? What about roi on each new incremental dollar invested?.

    You never improve simply because you have no shame. Do not respect yourself so have no ability to respect other people. Progressive values and why at the core it is the destructive force of this time.

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    • do all MLP's define DCF the same? What is the method LINE uses? Is DCF a more useful metric to track than EBITDA for LINE?

      • 1 Reply to farmercapitalist
      • It seems some around here klike to complicate matters when investing such as using DCF because they beleive they know all ans it sounds impressive to use such acronyms,

        Problems with DCF
        1.Operating Cash Flow Projections
        The first and most important factor in calculating the DCF value of a stock is estimating the series of operating cash flow projections. There are a number of inherent problems with earnings and cash flow forecasting that can generate problems with DCF analysis. The most prevalent is that the uncertainty with cash flow projection increases for each year in the forecast - and DCF models often use five or even 10 years' worth of estimates. The "out" years of the model can be total shots in the dark. Analysts may have a good idea of what operating cash flow will be for the current year and the following year, but beyond that, the ability to project earnings and cash flow diminishes rapidly. To make matters worse, cash flow projections in any given year will most likely be based largely on results for the preceding years. Small, erroneous assumptions in the first couple years of a model can amplify variances in operating cash flow projections in the later years of the model.

        DCF model discount rate is always theoretical and we do not really have any historical data to draw from when calculating it.

        Be Open Minded
        As an investor, it's wise to avoid being too reliant on one method over another when assessing the value of stocks. While most investors probably agree that the value of a stock is related to the present value of the future stream of free cash flow, the DCF approach can be difficult to apply in real-world scenarios. Supplementing the approach with multiple based target price approaches is useful in developing a full understanding of the value of a stock

        Just be your own person when investing and take advice as needed to apply too what you have discovered about a stock purchase.

 
LINE
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