Cryptocurrencies and cryptocurrencies stocks are to be valued the same way as other companies’ common stocks are valued: using discounted cash flows, comparables, precedent transactions and asset base methods, according to Wolfteam Ltd.’s view.
Many investors and research analysts claim that cryptocurrencies are not susceptible to discounted cash flows valuations, since they do not yield dividends. Meta, Alphabet and Amazon and many other technology and non technology stocks have also never distributed dividends and yet the textbook discounted cash flows, comparables, precedent transactions and asset base methods are used to value them.
Bitcoin, cryptocurrencies and cryptocurrencies related stocks will sooner or later distribute cash flows and dividends, according to Wolfteam Ltd.’s projections and estimates.
So the classic valuation methods should be applied also to cryptocurrencies and cryptocurrencies related stocks like Coinbase, Microstrategy, Block, Robinhood markets and Nu Holdings Ltd., for example in Wolfteam Ltd.’s view.
www.wolfteamedge.com
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