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hunter23
2625 days ago
Of course they do, they just value you differently. When companies announce slower growth it impacts their valuation because it impacts the discounted value of their future cash flows.
1 comments
refurb
2624 days ago
Exactly. You can think of the stock close price as having two components:current value + expected future value (of cash flows).
If a company grows more slowly, you’ll see the 2nd decrease, but the first will stay the same.
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If a company grows more slowly, you’ll see the 2nd decrease, but the first will stay the same.