4 ms·

Wouldn't the 12 month price target also be based on the long term? Whether it's today or a year from now, it should tend toward the present value (at that time)

Wouldn't the 12 month price target also be based on the long term? Whether it's today or a year from now, it should tend toward the present value (at that time) of all of its future cash flows.

JumpCrisscross 4y ago
> Wouldn't the 12 month price target also be based on the long term? No. There is a control/takeover/acquisition premium [1]. Owning a whole company is more valuable than owning part of one since you can control it without consideration for minority interests. [1] https://www.investopedia.com/terms/a/acquisitionpremium.asp https://www.investopedia.com/terms/a/acquisitionpremium.asp
- version_five 4y ago
  That explains why Musk may want to pay more. It doesn't relate to the options of the current shareholders.
  - deleted 4y ago
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- bitshiftfaced 4y ago
  That doesn't actually contradict the claim that the 12 month price target is still based on expected long term returns.
  - deleted 4y ago
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