The appropriate price to pay for a company that will make $1 million next year and then shut down is slightly less than $1 million; however, stocks are priced at P/E multiples (multiples of earnings) because investors assume companies will earn profits year after year into the future, making valuation a question of discounting perpetual future earnings.

definitionpending

Speaker

Howard Marks

Evidence Quote

what's the appropriate price to pay for a bright future if there's a company for sale that will make $1 million next year and then shut down how much would you pay for it

Source

On Bubble WatchOaktree Capital
Created: 8/11/2026, 7:51:42 AM

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