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/biz/ - Business & Finance

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>> No.56077022 [View]
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56077022

>>56077011

>> No.56048636 [View]
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56048636

>>56048626
Riddle me this. If corporate profits are 3 times larger than in 2008 and margins are 11% instead of 8%, why shouldn't stock prices go up?

>> No.56047235 [View]
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56047235

>>56047160
>The "profits" don't come from sales
In 2008 profit margins were 7%
Profits have increased by 3x, so if your thesis were true profit margins should be of 21%. The current profit margins of US corporations is 11% which can be explained due the growth of business that require low capital investment (mostly software). Also, stocks are valued on free cash flow (the quality of the business) not on sales

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