This is by Todd Combs in the latest edition of Security Analysis. I wonder how he did this since the formula for this calculation doesn't work if growth rate > discount rate? https://t.co/HpL0pbP5kQ

The Trouble With Value https://t.co/oCqY9UZ3Mp

"I heard stories that last year, end of 2022, when the auditors were getting involved, they were telling GPs to talk to each other to try to figure out how to value things." (source: Beezer Clarkson of Sapphire Partners) 2022 was the year that pissed-off LPs put a spotlight on poor valuation... See more

According to this report, VC will deliver 8.5% annual returns over the next 10-15-year investment horizon · VC has the widest dispersion of return · PE outperformed VC over a 40-year period · VC IPO P/S ratio over a 40-year period is 8.2x, valuations are reverting to the mean... See more

Mauboussin argues that typical valuation methods like P/E and EV/EBITDA are getting worst at reflecting the real economic picture of a company due to the rise of intangible assets on balance sheets. The Microsoft example is really shocking. https://t.co/BY3AXUwfhN