A Quote by Didier Sornette
Economic theory dictates that the value of a company is basically the present value of its future profits. To estimate Facebook's value through its future profits, we need to have a view on its user growth and how this will evolve in the next 10 to 50 years.
Related Quotes
Intrinsic value can be defined simply: It is the discounted value of the cash that can be taken out of a business during its remaining life. The calculation of intrinsic value, though, is not so simple. As our definition suggests, intrinsic value is an estimate rather than a precise figure, and it is additionally an estimate that must be changed if interest rates move or forecasts of future cash flows are revised.
Childhood is not merely basic training for utilitarian adulthood. It should have some claims upon our mercy, not for its future value to the economic interests of competitive societies but for its present value as a perishable piece of life itself.
We need to have a view that culture has a value in itself, not just in terms of a social and economic value.
A successful business maximizes the present value of future earnings. The first requirement, therefore, of business success is sustainable profits. One-time winnings, in business as in casinos, are disappointing. We expect more from our investments than that.
The habit of looking to the future and thinking that the whole meaning of the present lies in what it will bring forth is a pernicious one. There can be no value in the whole unless there is value in the parts.
I suppose, at 50, you value things in a different way. So you value connections, you value your friendships, you value your health, and you are much more aware of time passing.
What distinguishes a commons is that it is not private property, does not have a price, and is oriented towards 'use value' rather than 'exchange value.' It does not exist to generate profits.
I don't want a future, I want a present. To me this appears of greater value. You have a future only when you have no present, and when you have a present, you forget to even think about the future.
In a crisis, stocks of financial companies are great investments, because the tide is bound to turn. Massive losses on bad loans and soured investments are irrelevant to value; improving trends and future prospects are what matter, regardless of whether profits will have to be used to cover loan losses and equity shortfalls for years to come.
You need to focus on creating the actual value of the company, not just the theoretical value. The actual value comes from a great product that sells well and is ultimately profitable.
It is not good for all our wishes to be filled; through sickness we recognize the value of health; through evil, the value of good; through hunger, the value of food; through exertion, the value of rest.
I think maybe 50 years ago people and businesses felt like they had to choose between maximizing profits and making customers happy or making employees happy, and I think we're actually living in a special time where everyone's hyperconnected, whether through Twitter or blogs and so on. Information travels so quickly that it's actually possible to have it all, to make customers happy through customer service, to make employees happy through strong company cultures, and have that actually drive growth and profits.
Growth isn't central at all, because I'm trying to run this company as if it's going to be here a hundred years from now. And if you take where we are today and add 15% growth, like public companies need to have for their stock to stay up in value, I'd be a multi-trillion-dollar company in 40 years. Which is impossible, of course.
Shareholder value theory - the destructive idea that companies should be run solely for the benefit of shareholders - has led to financialized businesses that do not invest in the areas that will lead to future growth or the invention of useful new products.
The supreme value is not the future but the present. The future is a deceitful time that always says to us, 'Not Yet,' and thus denies us... Whoever builds a house for future happiness builds a prison for the present.
The value of "one person, one vote," the value of equality, is a value that was given to us more than 50 years ago as a central part of our constitutional tradition. So, under that principle, we ought to be applying the same standard today that I would have said we should have applied a year ago.
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