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> does Wall Street care? Some people on wallstreet do. In Mckinsey's book Valuation, they make it pretty clear to the reader that companies who spend a lot on
by ephemeral-life 3y ago
> does Wall Street care?
Some people on wallstreet do. In Mckinsey's book Valuation, they make it pretty clear to the reader that companies who spend a lot on r&d tend to have outsized returns compared to their counterparts, who don't spend that much.
- bionsystem 3y agoI'd say the whole market gives a premium to companies with R&D spend, that's part of the reason why they have higher valuation metrics (alongside growth, margins and other quant factors). That is, when they are not stupidly burning it or giving it away as stock compensation.