relationship between the stock performance and the fundamental performance of the company
Consider a company that is expected to generate the same FCF of $100 in perpetuity with no growth, and it does not have any debt. Assume that markets are efficient and that the stock is correctly priced based on its discounted cash flows. The company generates a profit and holds it in its cash account instead of reinvesting it. This company's stock price should then remain constant overtime if those expectation holds. How would investors in the stock see a return?
Quidem omnis inventore maxime occaecati voluptatem quasi sunt dolores. Quo aut expedita quisquam vitae harum voluptatem quod. Ratione dolores fuga ab deserunt. Est ut facere ut perferendis.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...