6 ms·
It's been irrational since the Industrial Revolution; future growth has never been priced in even to the level of a reasonable discount rate.
by marvin 3y ago
It's been irrational since the Industrial Revolution; future growth has never been priced in even to the level of a reasonable discount rate.
- arrowleaf 3y agoThe time value of money is constantly in flux, so even if future growth were priced in / perfect market theory held, prices would still change with P/E swings as investors can get more or less for their money elsewhere.