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You’re completely wrong. Asset values are not just a function of cash flow but also discount rates, growth in cash flow, and valuation multiples. Real estate c
by adam_arthur 4y ago
You’re completely wrong.
Asset values are not just a function of cash flow but also discount rates, growth in cash flow, and valuation multiples. Real estate cap rates have been compressing for decades, for example (same cash flow equals higher value, all else equal)
Please don’t spread misinformation in these threads
- paulddraper 4y agoValuation multiples is a symptom, not a cause. Discount rates have largely to do with inflation, and comes out in the wash of asset valuation changes. > Asset values are not just a function of cash flow but also growth in cash flow :/ --- Price to rent ratio: https://tradingeconomics.com/united-states/price-to-rent-ratio https://tradingeconomics.com/united-states/price-to-rent-rat... Though really, that's just a graph of inflation.