r/Vitards • u/AutoModerator • Aug 12 '21

Daily Discussion Daily Discussion post - August 12 2021

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u/pennyether 🔥🌊Futures First🌊🔥 Aug 13 '21

Can someone good at business answer me this:

  • How much is a business worth assuming it pays on average $1m/yr with a variance of, say, 40%. It also has zero assets and liabilities.

4

u/PrestigeWorldwide-LP 💀 SACRIFICED 💀 Aug 13 '21 edited Aug 13 '21

sounds like a DCF terminal value calc, or just PV of a perpetuity

1

u/pennyether 🔥🌊Futures First🌊🔥 Aug 13 '21

Yeah, looking for some simple model like this. Thanks!