As higher discount rates are embedded in traditional valuation models, the value of long-duration free cash flows is reduced exponentially, shrinking estimates of intrinsic worth. It’s purely fundamental.
This page is available to subscribers only. To gain access to members only content (including this research piece), click here to subscribe. With a subscription, you'll have access to all of our premium commentary, equity reports, dividend reports and Best Ideas Newsletter and Dividend Growth Newsletter, as well as receive discounts on all of our modeling tools and products. Financial advisers and institutional investors have even more to choose from!