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Wouldn't you want to own a company that doesn't pay profits for 20 years, but gives you $10B every year after those 20 years? Discounted cash flow (https://en.
by xiphias2 6y ago
Wouldn't you want to own a company that doesn't pay profits for 20 years, but gives you $10B every year after those 20 years?
Discounted cash flow (https://en.wikipedia.org/wiki/Discounted_cash_flow https://en.wikipedia.org/wiki/Discounted_cash_flow) is being used to value companies for this reason.
- itsoktocry 6y ago>Wouldn't you want to own a company that doesn't pay profits for 20 years, but gives you $10B every year after those 20 years? That's an expected dividend. What is the DCF available to shareholders of a company that never pays a dividend? Nothing.
- zarkov99 6y agoWhen has that ever happened to lowly stock holders?