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So the theoretical reason for the high values of tech companies is that margin is one of the biggest drivers of value in a dcf, due mostly to the non linear nat
by formercoder 6y ago
So the theoretical reason for the high values of tech companies is that margin is one of the biggest drivers of value in a dcf, due mostly to the non linear nature of division. However, many of the tech companies we’re seeing don’t have near those margins, they are in fact negative.