Discounted Cash Flow [Concepts Series]

Byrne Hobart
7 min readAug 24, 2020

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Economics nerds always complain that you should never compare stocks to flows. It’s meaningless to say that one company’s cash on hand is bigger than a country’s GDP, for example, because GDP is quoted in dollars per year and cash on hand is a cumulative quantity. It’s like saying a plane is faster than the distance from New York to Boston. Does not compute.

Byrne Hobart

I write about technology (more logos than techne) and economics. Newsletter: