Economics 101 for Product Managers by Google Product Leader
The Product Podcast
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Robot PM Isn't Worth as Much as I Can Have Right Now
A company like Robot PM is basically worth $10 million today because that's what happens if you keep adding these expected future profits and discounting them by 10% a year. But as we know, the world doesn't stay put. We can have an inflationary cycle maybe in the global economy as we have right now. Or interest rates are rising and investors can make a bigger return just by keeping their cash in the bank or investing their cash in securities that are far safer than Robot PM stock. In any one of these cases, my friends, the discount rate, which we accepted as 10% would have to increase.
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