NPV question

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Anonymous
NPV question 2016-05-11 20:35:27Post No. 1241198
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NPV question Anonymous 2016-05-11 20:35:27 Post No. 1241198 [Report]

Is it logical to calculate NPV for a company which's revenues/expenses result in a net loss, like Tesla? Is NPV calculation worth anything when done to companies with net loss.

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Anonymous 2016-05-11 20:39:10 Post No.1241206
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Anonymous 2016-05-11 20:39:10 Post No.1241206 [Report]

yes it gives you the NPV which will give you a base to determine the current premium.

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Anonymous 2016-05-11 20:41:10 Post No.1241212
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Anonymous 2016-05-11 20:41:10 Post No.1241212 [Report]

>>1241206
Yes, but my main issue is that when NPV is applied to a per share basis, it comes out as a negative.

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Anonymous 2016-05-11 20:47:40 Post No.1241225
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Anonymous 2016-05-11 20:47:40 Post No.1241225 [Report]

>>1241198
what the actual fuck
Are you trying to say dcf valuation?
What's your terminal value?
Generally no it doesn't make sense to value shit where cash flow or earnings or whatever the fuck you're using are negative that's why they came up with residual value or residual income discounted valuations but those are largely influenced by the terminal value too. Do yourself a favor and don't just learn bullshit from investopedia, get the cfa Lvl 1 books from someone and study. It's a free mba.

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Anonymous 2016-05-11 21:14:22 Post No.1241258
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Anonymous 2016-05-11 21:14:22 Post No.1241258 [Report]

>>1241225
No, NPV valuation is exactly what im trying to say. NPV calculation also includes a discount percent. I'm using the discounted future net income(or net loss, in the case).