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A New Way to Value (Tech) Stocks: The Rule of X – Upside-Down & Inside-Out

How to Value (tech) Stocks Traditional ways to value companies (such as multiples, sum-of-the-parts, discounted cash flows…) already existed long before Econopolis was founded. However, for emerging subindustries (like software SaaS), these tools often fail spectacularly. A young tech company often reinvests every dollar of revenue back into growth, resulting in negative earni ...