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This confuses present value of future earnings (a poor approximation maybe but a fundamental driver of the company's market cap) with a portion of ongoing expen
by version_five 4y ago
This confuses present value of future earnings (a poor approximation maybe but a fundamental driver of the company's market cap) with a portion of ongoing expenses, in this case some years' salary. I don't think you can really draw any conclusions from it.
- airocker 4y agoTrue , Microsoft p by e is 25 so twenty years should be a good approximate? Or how much would be appropriate?
- airocker 4y agoAlso, how so ever it is calculated by the market, is not that the value of the company right now and back then? I mean if Microsoft were some commodity, that’s what you would need to buy it outright.