TheAiGuy Posted June 19, 2015 Share Posted June 19, 2015 Hi all, I'm starting to look at companies like Amazon and Charter that don't show a lot of current profits but are plowing all of their money into investments. At a high level, I'm wondering how to think about value of these companies because it's not at all clear to me what makes a good measure. In one sense, you can price these companies (as opposed to value them) with and EV/EBITDA or P/S multiple using market comps, but that's a relative value technique and I'm looking for an absolute worth. One idea is to take a guess at revenue (for AMZN) X years in the future, think about what the likely business make-up will be, slap a margin on that and discount it back. That's a VC-style approach. Another thought, though, is to think of what the business is currently worth given intangibles like market position, possible monopolies, etc and track that change over time. That's basically impossible, but it's what's important. Any ideas? Link to comment Share on other sites More sharing options...
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