article thumbnail

5 Simple Sense-Checks That Vastly Improve Your Business Valuation

Valutico

Ultimately, these margins that have already occurred are an outcome of the real world economic conditions that the business operates within, as well as the company’s internal operations, and so having these values reasonably consistent with your future projections is usually a safer bet than allowing them to vary by a huge amount.

article thumbnail

Disagreements and First Principles: The Pushback on my Tesla Valuation

Musings on Markets

Angst about terminal value : As I noted in the last section, the questions around the growth rate I assume in year 10, and the 3.47% growth rate forever have less to do with Tesla and more to do with the economy.