>>TMSR Overvalued?:In Perspective.
>Could have something to do with all the companies
>in the S&P 500 growing in revenue at a rate that
>beats inflation, unlike TMSR.
>Try again - you are clearly grasping for straws...
??? With all due respect your post does not make any [logical, economic, corporate finance...sense]. Actually, and for your edification, TMSR unequivocally beats the S&P 500 in revenue growth (G*) during said time interval. And the relevant or more appropriate measure for creating wealth vs. "...companies in the S&P 500 growing in revenue at a rate that beats inflation..." is any one of many variations of the Capital Asset Pricing Model (CAPM) wherein wealth or shareholder value is simply created when ROE (assuming no dividends) exceeds a Company's cost of capital [a component of which includes an inflation premium]1. and an appropriate valuation model is simply the Sigma of the [present value (DCF) of all free cash flows across all product lines within a company over a period of [future] 5-7? years + a terminal value] [+ brand equity].2.
Again, in re: TMSR Overvalued?:In Perspective....the S&P 500 has outperformed TMSR in the time period designated ref/ quote.yahoo.com
1. until q1 1998 TMSRs ROE handily exceeded its cost of capital, hence its back-to-back [Aug/Sep 1997] Individual Investor Magazine Front Covers (America's Fastest Growing Companies) [which far exceeded S&P 500 growth rates], Wedbush Morgan, Van Kasper et al falling all over themselves over TMSR, and sporting a $19/share stock price (10/97), however, now obviously does not. TMSRs theoretical shareholder value is [apparently] anticipated to be tied to its WeCanTalk.com DCF analysis/potential [and in relation to other ".com" market capitalizations viz a viz NASCAR®/ThrustMaster Motorsports brand equity/market share dominance, ThrustMaster Direct <http://www.thrustmaster.com>+...+?].
2. Higgins, Robert C.; Analysis For Financial Management, DOW JONES-IRWIN, 1983.
Rappaport, Alfred. Creating Shareholder Value; The Free Press © 1986.
Copeland, Tom et al; VALUATION Measuring and Managing the Value of Companies; McKinsey & Company, Inc. © 1990. |
