Apparel Company Ripe for Buyout

There's a big misconception in value investing that valuation is anchored to a discounted cash flow approach, using the present value of a company's future cash flows to determine its intrinsic value.

DCF serves a very useful purpose and should be a part of any value investor's toolkit. But an asset is only worth what the next buyer is willing to pay for it. If you bought a $500,000 home in 2007 and wanted to sell in 2009, your home wasn't worth $500,000 to a buyer. Stock market investing is no different....448 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.

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