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DewDiligence

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DewDiligence

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Re: dewophile post# 244238

Thursday, 10/20/2022 7:58:57 PM

Thursday, October 20, 2022 7:58:57 PM

Post# of 252792
Re: Investor/analyst blind spot re steeply declining revenue_streams

PFE trades around where it did pre-Covid. Go figure.

Many investors and sell-side analysts have a blind spot when it comes to valuing steeply declining revenue streams, IMO. Since they can’t simply apply a “multiple” to arrive at a valuation for such revenue streams, they may end up mentally applying a multiple of zero, creating a sizable market inefficiency. PFE’s COVID revenue (and profit) could be Exhibit “A” for this phenomenon.

“The efficient-market hypothesis may be
the foremost piece of B.S. ever promulgated
in any area of human knowledge!”

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