Many investors get wrapped up in price and these multiples. They may rule out an investment before looking at the business fundamentals. Value is discounted present value, future cash flows accentuated by returns on investid capital. There's lots of reasons why stock prices go up and down that have nothing to do with business valuation. And we once you understand that there's a difference between business valuation and what stock prices are doing, boy, that's where the big money is made.

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