343PG on Nostr: Why should the share price have this perpetual gravity towards 1? Shares broadly ...
Why should the share price have this perpetual gravity towards 1?
Shares broadly trade at the value of their balance sheet, plus net present value of future profits. Why assume they can’t continue to make the future profits that they have been showing in their Bitcoin yield metrics?
I’ve argued before - you can put the case for mstr to be less than nav 1 (if you think they may go bust) or indeed greater - but 1 is never going to be the answer as to how to value them.
Shares broadly trade at the value of their balance sheet, plus net present value of future profits. Why assume they can’t continue to make the future profits that they have been showing in their Bitcoin yield metrics?
I’ve argued before - you can put the case for mstr to be less than nav 1 (if you think they may go bust) or indeed greater - but 1 is never going to be the answer as to how to value them.