Re:Why Amazon Has No Profits and Why It Works
by ghaff on Friday September 05, 2014 @05:50PM
(#8276505)
As others have written downthread, it's probably at least worth the pro-rated value of their assets at fair market value. That said, the classic theoretical valuation of a stock is the net present value of their dividends--i.e. the cash you receive from the company. Obviously this doesn't work very well as a stock pricing proxy for most companies. But if you factor in things like estimated acquisition price, you get closer.
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Re:Why Amazon Has No Profits and Why It Works
by sliverstorm on Friday September 05, 2014 @07:22PM
(#8276821)
Right, I mean it makes perfect sense if the dividends have some expected future value. But my parent was saying they don't need to make a profit. If they never turn a profit, the expected future value of the dividends is $0.