I could really relate to that fact that sell side research is just charts and charts which rarely mean anything. However, the real insight is : "In theory, a multiple is shorthand for a DCF, but it is commonly used out of convenience, leading to investors being blithely unaware of the assumptions that their multiples imply. Most commonly, the multiple makes implicit assumptions investors would be uncomfortable with were they to be explicit." It is shocking how many sell side analysts will write 30 page reports and have literally paragraph or few lines on valuation saying "Our price target for XYZ is based 13x 2023E earnings".
I could really relate to that fact that sell side research is just charts and charts which rarely mean anything. However, the real insight is : "In theory, a multiple is shorthand for a DCF, but it is commonly used out of convenience, leading to investors being blithely unaware of the assumptions that their multiples imply. Most commonly, the multiple makes implicit assumptions investors would be uncomfortable with were they to be explicit." It is shocking how many sell side analysts will write 30 page reports and have literally paragraph or few lines on valuation saying "Our price target for XYZ is based 13x 2023E earnings".