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> There's no such thing as 'underlying worth' :) The primary function of an asset is to generate income - through dividends, rent, bond interest etc. This inco
by badpun 7y ago
> There's no such thing as 'underlying worth' :)
The primary function of an asset is to generate income - through dividends, rent, bond interest etc. This income determines asset's underlying worth.
- JamesBarney 7y agoIt seems like you're getting at discounted future cash flow. But this has an easy explanation for why assets are more expensive. Interest rates are incredibly low which discounts future cash less.
- jariel 7y agoFunny because Apple hardly ever pays dividends. So what is APPL worth? Even if they did, what is a single share that produces $1 a month 'worth'? It depends on your cost of capital. In both cases, they are 'worth' what someone will pay for them :)
- xsmasher 7y agoAAPL has been paying dividends four times a year since 2012.