News for hackers. Stuff that matters.

A comment on Tesla drops 7% after Goldman Sachs says the stock is worth $180. Parent comment

Re:Tesla drops 7% after Goldman Sachs says the stock is wort... by MarkMc on Wednesday July 05, 2017 @08:13PM (#14707244)
> With a stock, you can be right, and it doesn't matter. Stock is only worth what somebody will pay for it

I don't see it that way. To me, a stock is worth the 'fundamental value', i.e. the future divided payments discounted by an appropriate interest rate. If no-one is willing to buy my shares I'm still happy because I get the future dividends.

[ Parent | on HN ]
Re:Tesla drops 7% after Goldman Sachs says the stock is wort... by solaxun on Thursday July 06, 2017 @03:52PM (#14713351)
That's all find and well, and using the "dividend discount model" is one of the many methods of valuation, but not every stock pays a dividend. Those that do can cut them at their leisure.
[ Parent | on HN ]