2.
The lesser variables, the more reliable the DCF will be.
2.
My DCF model has only 3 variables, namely 1 Earning Metric, 1 Profitability Ratio and 1 macroeconomic Inflation CPI ratio.
3.
It does not include Future Profit Growth as the growth effect has been factored in the Profitability Ratio.
4.
The period of years should not be guessed with a equal constant 5 or 10 years for all stocks.
5.
A company with competitive advantage and moat should have a longer period of years, rationally and logically.
I equal the period of years = Profitability (moat)
6.
How many variables are there in your DCF Model?
7.
Do not apply Gordon Growth Model in DCF as Gordon presumes infinite period (the company forever lives into trillions of years even thought the solar system would have already vanished by that time).