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- Topic: A philosophical question
| Author | Topic: A philosophical question |
|---|---|
| shakeel @2019-12-21 14:09:04 |
I know this is not how the real world works but theoretically speaking, assume a company is growing constantly at 10% and will probably do so in perpetuity. The multiple on this company hence should remain constant since its growth expectations are not changing , say p/E of 10x. So does the stock just keep on moving upwards every year as the numbers move up and the multiple remains the same? Thinking from another angle, the stock should jump to infinity because you are getting the company growing all the way to infinity? Makes sense? Thoughts? |
