- High-growth companies have performed very well in the past decade.
- Many analysts point out to a general froth in valuations and the potential for multiples to compress, eventually.
- It's challenging to value a business that is in its infancy or that has yet to turn a profit, and it usually involves false precision.
- While valuation can give you a sense of your margin of safety, the performance of the underlying business will always prevail over time.
- I'll try to address how to value a growth stock with more context.
For further details see:
How To Value A Growth Stock