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Inflation means prices are increasing. Your company probably gets more revenue when prices go up. Whether you come out ahead will depend on a lot of factors - w
by fshbbdssbbgdd 5y ago
Inflation means prices are increasing. Your company probably gets more revenue when prices go up. Whether you come out ahead will depend on a lot of factors - what kind of inputs you have, how much pricing power, etc. But you can’t just discount your cash flows by the inflation rate unless you also incorporate the increased revenue into your estimate of the cash flows.
- nanis 5y agoWhy do you think the stock market indexes are crashing as inflationary expectations are being entrenched?