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Of course they do, they just value you differently. When companies announce slower growth it impacts their valuation because it impacts the discounted value of
by hunter23 7y ago
Of course they do, they just value you differently. When companies announce slower growth it impacts their valuation because it impacts the discounted value of their future cash flows.
- refurb 7y agoExactly. You can think of the stock close price as having two components:current value + expected future value (of cash flows). If a company grows more slowly, you’ll see the 2nd decrease, but the first will stay the same.