Re:Tesla staff say firm's entire Supercharger team fired
by indigoabstract on Wednesday May 01, 2024 @12:18PM
(#40225358)
Yes and since no one can accurately predict that, its valuation is based more on speculation, rather than what could be extrapolated from the numbers alone.
Which is probably a bit counterintuitive for most people. At least for me it was.
Re:Tesla staff say firm's entire Supercharger team fired
by lotsofpulp on Wednesday May 01, 2024 @02:23PM
(#40227149)
All valuation is based on speculation. “The numbers” are always subject to change.
Re:Tesla staff say firm's entire Supercharger team fired
by indigoabstract on Wednesday May 01, 2024 @02:56PM
(#40227672)
I guess I was thinking about how a more regular/predictable business would usually be sold by its owners for a multiple of its yearly revenue, for example.
Would the same apply to unicorns? Probably not, because they're special.
Re:Tesla staff say firm's entire Supercharger team fired
by lotsofpulp on Wednesday May 01, 2024 @03:33PM
(#40228229)
Both situations are still betting on future potential, either via earnings maintenance/growth, or via betting on being able to sell the equity at a higher price to a subsequent buyer.
Re:Tesla staff say firm's entire Supercharger team fired
by Breza on Sunday May 05, 2024 @04:05PM
(#40267772)
Matt Levine has a great newsletter where he regularly delves into questions like this. He recently wondered, somewhat seriously, if the era of valuing stocks based on fundamentals was a fad that's now over.
No, you'd expect it to be tied to the market's assessment of the company's total lifetime value. That will hopefully be informed by revenue and profit, but isn't limited to those, as disruptive companies might be round the corner about to wipe it out, or vice versa.