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How can 1 US company be worth more than the top 350 UK companies?
Comments
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Understood.GeoffTF said:
The market believes that the net present value of Tesla's earnings will be much more than Ford's. If you believe that the market is wrong, you can buy Ford and short sell Tesla. You may, however, find that the market can remain irrational for longer than you can stay solvent (as Keynes famously said).Middle_of_the_Road said:
No doubt some are. Would like to know how these two companies are valuedmasonic said:Perhaps they are overvalued.
Tesla ~ $1 tn
Ford ~ $40 bn
It does seem rather irrational that one is going to have 25 times the earnings, whilst selling 75% fewer vehicles.1 -
Middle_of_the_Road said:
Understood.GeoffTF said:
The market believes that the net present value of Tesla's earnings will be much more than Ford's. If you believe that the market is wrong, you can buy Ford and short sell Tesla. You may, however, find that the market can remain irrational for longer than you can stay solvent (as Keynes famously said).Middle_of_the_Road said:
No doubt some are. Would like to know how these two companies are valuedmasonic said:Perhaps they are overvalued.
Tesla ~ $1 tn
Ford ~ $40 bn
It does seem rather irrational that one is going to have 25 times the earnings, whilst selling 75% fewer vehicles.You would have made 14% with a short on Tesla today:Tesla is still showing a post election gain though.1 -
The problem is the companies that make up the overwhelming bulk of our "large economy" are in no growth sectors. Banks, oil, mining etc.IanManc said:
The UK is the 6th largest economy in the world, and the 9th biggest manufacturer in the world.[Deleted User] said:
........ but yeah it's pretty dead on the island nowadays ........
However, it has a sizeable portion of its population which glibly talks the UK down contrary to the evidence.
Just for fun I removed banks, oil & gas, insurance, mining, and tobacco from the FTSE 350 and the market cap drops by 45%. So nearly half of the market cap is made up from those relic companies.
I removed those same sectors from the S&P500 and the market cap drops by just 26%.
The contrast is undeniable. I don't really mind if the UK stock market is fuelled by high profit no growth companies, but I better be getting a 10% dividend yield as a result.2 -
Driven by the feud brewing between two of America's finest citizens, which likely could have been predicted, but I wouldn't gamble in this market, seems no more credible than bitcoin.GeoffTF said:Middle_of_the_Road said:
Understood.GeoffTF said:
The market believes that the net present value of Tesla's earnings will be much more than Ford's. If you believe that the market is wrong, you can buy Ford and short sell Tesla. You may, however, find that the market can remain irrational for longer than you can stay solvent (as Keynes famously said).Middle_of_the_Road said:
No doubt some are. Would like to know how these two companies are valuedmasonic said:Perhaps they are overvalued.
Tesla ~ $1 tn
Ford ~ $40 bn
It does seem rather irrational that one is going to have 25 times the earnings, whilst selling 75% fewer vehicles.You would have made 14% with a short on Tesla today:Tesla is still showing a post election gain though.0 -
Trump has stabbed Musk in the back. The "Big Beautifull Bill" is destined to remove the state subsidy from Tesla cars. Another nail in Musk's business plan. That $250 million (£187m) spent supporting Trump's election campaign is dead money.Middle_of_the_Road said:
Driven by the feud brewing between two of America's finest citizens, which likely could have been predicted, but I wouldn't gamble in this market, seems no more credible than bitcoin.GeoffTF said:Middle_of_the_Road said:
Understood.GeoffTF said:
The market believes that the net present value of Tesla's earnings will be much more than Ford's. If you believe that the market is wrong, you can buy Ford and short sell Tesla. You may, however, find that the market can remain irrational for longer than you can stay solvent (as Keynes famously said).Middle_of_the_Road said:
No doubt some are. Would like to know how these two companies are valuedmasonic said:Perhaps they are overvalued.
Tesla ~ $1 tn
Ford ~ $40 bn
It does seem rather irrational that one is going to have 25 times the earnings, whilst selling 75% fewer vehicles.You would have made 14% with a short on Tesla today:Tesla is still showing a post election gain though.1 -
No doubt. I probably shouldn't comment further, at risk of straying into political territory.Hoenir said:
Trump has stabbed Musk in the back. The "Big Beautifull Bill" is destined to remove the state subsidy from Tesla cars. Another nail in Musk's business plan. That $250 million (£187m) spent supporting Trump's election campaign is dead money.Middle_of_the_Road said:
Driven by the feud brewing between two of America's finest citizens, which likely could have been predicted, but I wouldn't gamble in this market, seems no more credible than bitcoin.GeoffTF said:Middle_of_the_Road said:
Understood.GeoffTF said:
The market believes that the net present value of Tesla's earnings will be much more than Ford's. If you believe that the market is wrong, you can buy Ford and short sell Tesla. You may, however, find that the market can remain irrational for longer than you can stay solvent (as Keynes famously said).Middle_of_the_Road said:
No doubt some are. Would like to know how these two companies are valuedmasonic said:Perhaps they are overvalued.
Tesla ~ $1 tn
Ford ~ $40 bn
It does seem rather irrational that one is going to have 25 times the earnings, whilst selling 75% fewer vehicles.You would have made 14% with a short on Tesla today:Tesla is still showing a post election gain though.0 -
You cannot think of any companies operating in Britain and for which people work that aren't listed on the LSE?[Deleted User] said:
The problem is the companies that make up the overwhelming bulk of our "large economy" are in no growth sectors. Banks, oil, mining etc.IanManc said:
The UK is the 6th largest economy in the world, and the 9th biggest manufacturer in the world.[Deleted User] said:
........ but yeah it's pretty dead on the island nowadays ........
However, it has a sizeable portion of its population which glibly talks the UK down contrary to the evidence.
Just for fun I removed banks, oil & gas, insurance, mining, and tobacco from the FTSE 350 and the market cap drops by 45%. So nearly half of the market cap is made up from those relic companies.
I removed those same sectors from the S&P500 and the market cap drops by just 26%.
The contrast is undeniable. I don't really mind if the UK stock market is fuelled by high profit no growth companies, but I better be getting a 10% dividend yield as a result.2
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