Key take-aways for this article: The key to valuation is estimating growth, ROIC and RONIC. This is difficult for digital companies because of the opacity of intangible assets and investments. In Part 2, I will give you frameworks for taking apart intangible assets in digital companies. *** I am in Kuala Lumpur this week, writing […]
Delve into Jeff Towson’s Podcast 148, where he provides a comprehensive valuation for Microsoft and its tech strategy. This episode offers expert insights into the tech giant’s future, making it a must-listen for tech enthusiasts and investors alike. Tune in to understand Microsoft’s position in the market and potential growth opportunities.
Growth, ROIC, and growth+sales are all important factors to consider when valuing a digital business. Growth is important because it shows that the business is expanding and has the potential to generate more revenue in the future. ROIC is important because it shows how efficiently the business is using its capital. Growth+sales is important because it shows how much revenue the business is generating from each new customer.
This is my third article on digital valuation. In Part 1, I talked about DCF – and where it works and where it doesn’t. In Part 2, I talked about the discount rate, which is a particularly inaccurate factor. And that brings me to Part 3, which is about growth – and when it creates […]