zlacker

>>qp11+(OP)
How does this fit with the observation of the German DAX going from 12,000 (during pandemic even below 9k shortly) to currently 18,000? Can anyone give a good explanation?

>>submet+7d
Inflation and interest rates, both recent and future ones.

Let’s say a company has revenue X and is valued as NX on the stock market. Let’s say they will be increasing prices to maintain profits in the next several years and will reach X+Y just because of that. If nothing else changes fundamentally, they should be valued at N(X+Y) at some point.