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Given that any realistic DCF model of Tesla needs to be probabilistic to some degree (measure different scenarios against each other) and that a company's true
by 001sky 12y ago
Given that any realistic DCF model of Tesla needs to be probabilistic to some degree (measure different scenarios against each other) and that a company's true market value is still the unknown present-value adjusted sum of all its future earnings, we are still going to see massive disagreement about Tesla's correct valuation in the years ahead. Contemptuous comments about bajillion-dollar valuations and hype don't provide any value to this discussion.
This sentiment is mis-placed. Markets don't "argue" over prices. And DCF's don't set valuations based on measured anything.
The DCF is there to simply inform the prejudices of market partcipants. The utility of DCfs is simply to get some insight into people's predudices. This is arguably more helpful than simply pretending that any single set of prejudices is more or less {correct, useful, interesting}.