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Old school valuations are based on NPV discounts of future cash flows. That obviously includes profit, but also all the other factors around growth and drag alo
by skeeter2020 4y ago
Old school valuations are based on NPV discounts of future cash flows. That obviously includes profit, but also all the other factors around growth and drag along. You'd never get any of the valuations we see today based only on x'ing profit, even for the oldest of old school businesses.
- deleted 4y ago[deleted]
- Retric 4y agoSure, you can specify things as estimates of future profit based on past profit adjusted for risk, growth, NPV, and whatnot. However my point was these calculations are at their core core based on profit.