@shreyasd
- 3 Followers
- 4 Following
- 85 Posts
Isn't entire finance industry just anchoring bias?
Expectations spun out of thin air in conjunction with monetary debasement run in background giving a sense of growth.
Which in reality is just a way of control not understood by participants.
#Finance #AI #CapitalMarkets
Expectations spun out of thin air in conjunction with monetary debasement run in background giving a sense of growth.
Which in reality is just a way of control not understood by participants.
#Finance #AI #CapitalMarkets
@AlexanderKingsbury Point is not about what value it has but subjective nature of value. Read post again.
Exercise of valuations and capital market pricing relies on calculating future expectations, future multiples and future revenues. Numbers put in excel sheets by analysts.
Doesn't it seem like that the entire basis of capital market pricing just made up?
For making the market a buyer and a seller is required at a price. So at the same price a person find value and other does not. All valuations are subjective. No objectivity. Then why to consider valuing as objective because of capital market pricing and get fixated on it?
#Valuations #AI #Capitalism
#Valuations #AI #Capitalism
@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.
Can you have PE if there is no E or negative E?
If a startup never makes money, will applying higher multiple for scaling/hyper scaling make it bigger or lesser negative?
If startup has negative operating cashflow since inception, can it even be considered a legitimate business?
@blackburied Ubiquitousness due to access to technology .
Proliferation of dubious financial products/paper assets not seen before.
Indiscriminate access of financial products particularly by those who have no know how of it or its utility. To be fair most finance people dont understand either.
Inventing of creative matrices to obfuscate.
Institutionalizing of creative accounting by founders, VCs, PE, underwriters.
Complicity of regulators and ratings agencies.
Proliferation of dubious financial products/paper assets not seen before.
Indiscriminate access of financial products particularly by those who have no know how of it or its utility. To be fair most finance people dont understand either.
Inventing of creative matrices to obfuscate.
Institutionalizing of creative accounting by founders, VCs, PE, underwriters.
Complicity of regulators and ratings agencies.