Amazon and Apple at a Trillion $: A Follow-up on Uncertainty and Catalysts! | Value Investing News

Amazon and Apple at a Trillion $: A Follow-up on Uncertainty and Catalysts!

  • That said, it is puzzling that we still stick with point estimates (single numbers for revenue growth and operating margins) in conventional valuation, when we have the tools to bring in uncertainty into our valuation judgments.
  • Simulated Values: Apple and Amazon Before delving into the simulations for Apple and Amazon, it is important that we set up the structure of the simulations first by first deciding what variables to build distributions around.
  • With Apple, the three inputs that I will build distributions around are revenue growth, operating margins and cost of capital.
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