shreyasd
Mika Rautio@shreyasd speculation on future value seems to be the way how people invest. investors pursue high risk (no cashflow), high reward (economies of scale and high future cash flow)
@mrautio
How do one calculate future value when there has never been a single positive cashflow?
How do one calculate future value when there has never been a single positive cashflow?
@shreyasd i think that is where speculating from investors comes in based on market trends, target market value and so on
@mrautio Yes.
To be honest complete exercise of valuation and capital market pricing is based upon speculation. Projecting future revenues, calculating future multiples, future expectations - all are just made up numbers. Analysts put them in excel sheet to make their clients happy.
Sad part is that this exercise of making up numbers has taken precedence over what is realized, leading to funding which should not have happened in the first place.Entire modern economy is just made up.
To be honest complete exercise of valuation and capital market pricing is based upon speculation. Projecting future revenues, calculating future multiples, future expectations - all are just made up numbers. Analysts put them in excel sheet to make their clients happy.
Sad part is that this exercise of making up numbers has taken precedence over what is realized, leading to funding which should not have happened in the first place.Entire modern economy is just made up.