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You are confused or may not have been paying attention to the context of the post you replied to. We're talking about the value of a publicly traded company, N
by anotherman554 5y ago
You are confused or may not have been paying attention to the context of the post you replied to. We're talking about the value of a publicly traded company, Nvidia. We aren't talking about the value of the Mona Lisa, or an NFT of a dancing monkey or even a Bitcoin.
I didn't write anything controversial and you don't need to consult an economics textbook, a basic Investopedia article will do:
From Investopedia:
https://www.investopedia.com/articles/fundamental-analysis/11/choosing-valuation-methods.asp https://www.investopedia.com/articles/fundamental-analysis/1...
"The dividend discount model (DDM) is one of the most basic of the absolute valuation models. The dividend discount model calculates the "true" value of a firm based on the dividends the company pays its shareholders."
An alternative model if there is no dividends:
"the Discounted Cash Flow model uses a firm's discounted future cash flows to value the business. "
The ability of a firm to sell itself to a foreign firm is not a factor is valuing the firm.
I wouldn't use these models to value a Pikachu trading card, but this is stock market 101 type stuff.