Re: Mental Models-Financial Assets As Levers.
It feels like the markets are about to encounter a major regime shift, so I thought I would write about how I think about valuation frameworks in terms of LEVERS.
The other day, this Musing invited some questions:
Let’s briefly go back to business school and touch on the basic DCF (Discounted Cash Flow) equation, where i = interest rate, CF = cash flow for period n, TV = terminal value at end of term t:
