4 ms·
In the long term, a company's value is usually considered to be the discounted future cash flows. Stock price is often vaguely, if at all, correlated with this
by RogerL 12y ago
In the long term, a company's value is usually considered to be the discounted future cash flows. Stock price is often vaguely, if at all, correlated with this number.
- refurb 12y agoIn the long term, a company's value is usually considered to be the discounted future cash flows. Yes, theoretically it is. However, the value (price) of something is not decided by some formula, it's decided by the market. Think back to the real estate crash of 2007. Value was dictated by what people would pay, not by some calculation of value.