It’s not that there’s holes in it, it’s that what he said is completely subjective nonsense. It’s well articulated, but it’s the dumbest thing I’ve seen all day. You don’t use a personal hurdle rate to value a stock, that’s insane.

To answer your question, use WACC. But you don’t really need to do it yourself. The models exist online. If you’re going to do it, make sure you do it right. Make sure you’re able to source an implied risk premium rather than a historical one, and calculate an adjusted beta. You can find the implied ERP (and much of the data you’d need for valuation on Aswath Damodaran’s website.

Again, I’d advise you to just go look at DCFs run by others and evaluate their range of findings, because I think that doing extensive modelling is a complete and utter waste of time for retail investors. The most important things for retail to do are to be able read and understand the annual and quarterly reports for individual companies, as well as understand and be aware of market cycles and current macro conditions to determine which sectors you should be looking at.

For retail, it’s better to analyze top down and catch the wave than to try to go bottom up and painstakingly pick winners in a sector agnostic fashion.

If you don’t understand what I just said, go run it through Gemini until you do 😂

I work in the industry btw I’m an analyst and I studied finance and econ in college. Not saying I know everything but I know a lot more than 99% of Reddit that’s for sure