Distinctive Elements
Primary tool: discounted cash flow (DCF) based on detailed 5-year projections
- Identify company’s key value drivers based on detailed business line analysis
- Enables us to quantify the impact of key assumptions on our buy and sell prices
Redeployment, not just generation, of free cash flow key to analysis
- Strong relationships with management result in better information and constructive input
- Understand business rationale for capital allocation decisions
High absolute return target embedded in our DCF analysis
- 15% or 20% discount rate for all company models
- Not a function of market environment
