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Raúl Gim's avatar

I think a good aproach is starting from last marging tend it to median margins, as margings improved the median willl increas. What do you think? Another aproach I do IS a Montecarlo simulation.

School of Investing's avatar

I agree, that's a good approach, as is the Montecarlo. I think approaching normalizing from a few diffferent angles is a smart way to approach any analysis. It gives different ways to look at a problem and decide which is more reasonable. How do you do your Montecarlo simulations?

Raúl Gim's avatar

I had a homemade Montecarlo simulation in my Excel spreadsheets using random function. I design different kind of distributions but usually I just use the square or normal ones. Now I am starting to use othera like log normal or triangular but ir is complex to found a good median value.

School of Investing's avatar

That sounds amazing, way above my Excel skills for sure. I tried one Damodaran recommended a few years back and loved it.