Duan Yongping · Simplified future cash-flow valuation
Treats investing as buying a company's lifetime net cash flows while minimizing parameters and emphasizing business understanding, opportunity cost and a wide margin of safety.
- Guide level
- Practical
- Output
- Intrinsic value
Core formula
Value ≈ present value of five-year normalized net cash flow + present value of long-term valueHow to interpret it
Treats investing as buying a company's lifetime net cash flows while minimizing parameters and emphasizing business understanding, opportunity cost and a wide margin of safety.
The output should be read as a scenario or decision aid, not as a guaranteed price target. Compare it with at least one method based on different economic assumptions.
Practical workflow
- Normalize the latest public financial and operating data.
- Choose assumptions that match the company's economics and accounting structure.
- Calculate conservative, base and optimistic cases where the method permits.
- Compare the result with market pricing and an independent valuation method.
- Document the assumptions that drive the largest changes in value.
Key limitation
This is a simplified interpretive framework, not an authorized fixed formula from Duan Yongping.
How Stockinsky uses it
Stockinsky uses this framework only when the company type and available data support it. Professional valuations expose assumptions, sources and warnings instead of presenting false precision.