3 ms·
> they are just plain wrong and should be disregarded. Are you saying Palantir's previous 10-Ks and 10-Qs have material misstatements of fact?
by jgalt212 2y ago
> they are just plain wrong and should be disregarded.
Are you saying Palantir's previous 10-Ks and 10-Qs have material misstatements of fact?
- airstrike 2y agoNo, it's just the trading multiples derived from them that are totally wrong for the purposes of valuing the company today, because the Ks and Qs pertain to the past, which we cannot visit.
- nonameiguess 2y agoKind of conveniently cut off the first part of the statement there. The basis of fundamental valuation, discounted cash flow analysis, looks at all cash flows, forever, into the far future until the company dies. For a sufficiently mature company, current earnings are reasonably considered a good approximation of future earnings. For a newer company that is growing rapidly and spending most of its cash on long term investments rather than current year operations, it is not. Otherwise, every new company that has no earnings yet would be worthless, or if you consider losing money to be negative earnings, you're saying they should be paying you to own them.