ectopic 发表于 2010-7-7 19:56
EPS gives me P/E, which summarises market expectations of the company's risk and growth. That's a lot of information in just one number.

With operating cash flow, say $1 billion for example, what can you infer from it? Very little. You cannot perform DCF valuation by just looking at operating cash flows.

ectopic 发表于 2010-7-14 11:57
As you said it depends on your investment horizon. If you are a long-term investor like Warren Buffett, 10-year bond yield is a reasonable rate to use. In fact Warren Buffett likes to hold forever, so 30-year bonds would suit him better. But 99.9% of people I know have much, much shorter holding periods. If you look at other threads most people buy today and expect to make profit tomorrow. For them the risk-free rate would be interest rate on their savings accounts.   

You can use the current yield, or an average of historical yields. There is no definitive rule. Use whatever that makes sense to you.