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Which tech stock was valued at 100x sales in the 80s? I'm sure there are plenty of examples from 1999, though.
by adam_arthur 4y ago
Which tech stock was valued at 100x sales in the 80s? I'm sure there are plenty of examples from 1999, though.
- paulpauper 4y agowhat were interest rates in 1998-1999?
- adam_arthur 4y agoYou implied the tech stock boom wasn't due to a low discount rate, yet the valuations today are far higher than tech stocks in the 80s, even at comparable growth rates. Which makes it plainly obvious that a lot of the valuation gains are, in fact, due to the discount rate, and not organic growth. 3x of Apple's market cap growth since 2018 is a change in valuation multiple, and nothing to do with actual growth of its revenue/profits, for example. Is it a boom if a majority of your gains are due to changing the valuation peg and leaving the rest the same? Sounds more like a bubble to me Though my point is more directed towards the 100x PS companies, which are a far more egregious example of overvaluation