I just saw a post that said Tesla stock is only worth 1/5 as much as it’s valued as. It doesn’t make sense to me.
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It’s because in theory, a share is worth however much in profit you will be getting from that company throughout the lifetime of that company. Right now if you buy a share of tesla, it would take 67 years for tesla to generate enough profit for you to make your money back.
This is very simplified and ignores that profits aren’t directly distributed as dividends or buybacks until later in a company’s life cycle and that teslas revenues continue to grow rapidly and the time value of money (discount rate)
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