So according to Buffets philosophy, you should only buy undervalued businesses, and you can get a good idea of this depending on the P/E ratio and discounted cash flow analysis. However, from my understanding, if you carry out a DCF model on big companies such as Microsoft and Apple, it always suggests that the company is overvalued.
However, these big companies have continued to rise significantly in price over the years.
Just wondering anyone have any advice or correction on my knowledge?
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