In a December’s monthly meeting with Pro members, one of our clients (“Bob”) asked a very important question:
“How do I model potential impacts on increased tariff on my holdings.”
Bob explained that he’d been working with many other firms to get an answer, including Bloomberg. By the way, Bob is a very important client of Bloomberg, and they’ve done many special projects for him.
Bob reiterated to me today that he’s still had no luck getting anyone else to help him answer his question.
I showed how to measure the impacts of tariffs on stock valuations. I want to share my answer with you, because I suspect that many people are asking the same questions.
I used our best-in-class discounted cash flow (DCF) modeling tools to create scenarios that captured the valuation impact of tariffs that help or hurt margins and revenues. In other words, I showed exactly how much the stock price might go up or down based on tariffs.
With our DCF model, it’s easy and only takes a few seconds to quantify the impact of anything that affects future revenues, margins, and cash flows.
If you’re interested in seeing more examples of how our DCF model works, I recommend checking out the Reverse DCF Case Studies here in our Online Community. To sign up to our Online Community, complete this form.
Our community is free to join as is access to the Reverse DCF case studies.
If you’re interested in learning more about how to get to the truth about stock valuation, watch our latest training: Unveiling a Trust-Based Rating System for Smarter Investing.
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This article was originally published on January 24, 2024.
Disclosure: David Trainer, Kyle Guske II, and Hakan Salt receive no compensation to write about any specific stock, style, or theme.
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