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A useful framework is that companies should be valued at all future profits, adjusted for inflation and risk
by DaniFong 19y ago
A useful framework is that companies should be valued at all future profits, adjusted for inflation and risk
- Zak 19y agoObviously. The problem here is estimating profits and risk.
- DaniFong 19y agoI hope it was 'oh, that's obvious' rather than 'duh... obvious'. I mean, many people just try to evaluate the dream. Others try price earnings ratios. But rarely do I hear mention of this type of analysis, so I decided to mention it.
- Zak 19y agoIt's the latter, but my comment was directed against the great number of people who fail to understand that all sensible ways of pricing a business are just attempts to estimate its future earnings and liabilities.