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Technology Stocks : Internet Analysis - Discussion
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To: MaryinRed who wrote (211)2/23/1999 8:49:00 PM
From: Chuzzlewit  Read Replies (2) of 419
 
Mary, don't be amazed. If you look at the list not a single item consisted of the present value of future cash flows.

Let me be very simple minded here: revenues by themselves are meaningless. An entity may have billions in revenues and be virtually worthless.

Now I fully understand that marketing people have a focus on the top line, and accounting people have a bottom line focus. But we poor financial professionals insist that cash is the basis for valuations. So what I need, and don't yet see, are the cash projections required to support today's valuations.

What I need to see is a 10 or 15 year free cash flow projection. Then what I need to see is how those "metrics" in some way reflect the cash flow.

Instead, what I see are a number of irrelevant quantities which simply reflect the implicit value that investors have placed on these companies.

TTFN,
CTC
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