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I meant based on reported actual figures, rather than predicted ones. It was just a random thought though - the way our financial markets work is so entrenched
by GordonS 6y ago
I meant based on reported actual figures, rather than predicted ones. It was just a random thought though - the way our financial markets work is so entrenched that I'd be very surprised if anything like it did actually exist anywhere.
- WJW 6y agoIt doesn't matter whether the rest of the world will do anything with it if we enjoy theorizing about it on the internet in our free time :) I don't think reported actual figures are enough to form a good enough image of the worth of a company. The proverbial example would be of buggy whip companies (selling whips for horse drawn carts) reporting record profits the year that Ford opened his first automobile factory. Clearly the buggy whip companies did not have a bright future ahead of them, but you wouldn't be able to tell from reported figures.
- elindbe3 6y agoReported figures happened in the past though, it's the future cash flows which affect the price of a company and no one knows what those cash flows will be exactly, not even the company itself.