Episode 6: Why Discount Future Cash Flows | Value of Growth Lecture Series

Paul Johnson

Paul Johnson

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After 4 lectures focused on price (P) and market efficiency, this video flips to the other side of the P less than V equation to initiate the discussion on value (V). We know that the fundamental value of any asset is the present value of all future cash flows discounted for time and uncertainty. I address why we discount future cash flows in this video.

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