The Drivers of Valuation
8 min readFeb 9, 2021
Stock analysts say that expectations for future performance define a company’s valuation, and if the market seems disconnected from the state of the economy, it’s because investors are looking ahead. This suggests broadly shared clairvoyance among investors, something that eludes business and public policy leaders.
This concept equation offers another way to understand what drives a valuation. [Note: a valuation is the…