4 ms·
> no one who values companies professionally predicts cash flows more than ~5 years out > what happens in practice is that you take the cash flows of year 5 an
by wallacoloo 6y ago
> no one who values companies professionally predicts cash flows more than ~5 years out
> what happens in practice is that you take the cash flows of year 5 and you annuitize it into the far future with the estimated growth rate, and call it a day.
How is that not a prediction?
- clairity 6y agoit's done out of tradition, not prediction.