In 2002, after his stock fell 90%, the CEO of Sun Microsystems said the most honest thing a CEO has ever said about a valuation.
At 10 times revenue, to pay you back in ten years, I'd have to give you 100% of revenue as a dividend. Every year. For a decade.
Zero cost of goods. Zero expenses. Zero taxes. Zero R&D. Just hand you every dollar that comes in.
"Do you realize how ridiculous those assumptions are? What were you thinking?"
That was one company. A cautionary tale everyone nodded at and promptly forgot.
Today, 51% of the S&P 500 trades above 10 times revenue.
Different decade. Same math.
@RealEmirHan Mark Wahlberg is awesome.
He's been in the movie industry for so long on such mediocre acting & the amazing part, its the same acting no matter the movie genre. Just brilliant! 👏