TSX:AX.P.E - Post by User
Post by
Torontojayon Apr 10, 2024 11:27am
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Post# 35981268
How to properly value a company
How to properly value a company To use the Wayne Gretzky analogy, "I skate to where the puck is going to be, not where it has been."
People focus a lot on trying to determine the intrinsic value of a company and they could be wasting their time. In other words, focus more on how much money you could make if you purchase stocks today and sell it at some point in the future. I think that's an eloquent way to put it. Skate to where the puck is going to be.
If you're a reit investor, what are the cash flows going to be 5 years from now? What multiple will investors pay for these cash flows in the future? Finally, how much money can I make if I buy today and sell in 5 years?
This is the correct way to think about investments.