REAL WORTH AND MARKET PRICE
27 April 2022
Breaking with commonly held beliefs at the time, the crux of Williams' theory was that the intrinsic value of a company was equal to the present value of its future dividends, not earnings. “Earnings are only a means to an end,” Williams argued, “and the means should not be mistaken for the end.
Breaking with commonly held beliefs at the time, the crux of Williams' theory was that the intrinsic value of a company was equal to the present value of its future dividends, not earnings. “Earnings are only a means to an end,” Williams argued, “and the means should not be mistaken for the end.