TFC 7.42% $1.31 tfs corporation limited

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  1. 1,080 Posts.
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    True, that's one way of doing it. The problem with applying that method is that there is little/no value in Indian sandalwood trees <10 years old, particularly when you account harvesting cost which is quite expensive. Likewise, selling at cost would severely undervalue these assets.

    Not saying DCF is an art rather than a science, but as long as the assumptions are reasonable I believe its the lesser of two evils. The market is basically applying the uncertainty value in such a long term DCF regarding risk, as you have correctly pointed out.
 
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