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1. ivan_g+(OP)[view] [source] 2024-06-14 19:39:55
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.

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