Let's say Company 1 has $1B revenue and has grown 5x in the last year, and 20x the last 2 years.. Let's say Company 2 has $1B revenue and that's the same as it was last year and the year before.
Should these companies be valued the same?
Should these companies be valued the same?
By who? Public money is looking for dividends (profits) not growth?
Amazon has ~10 Billion outstanding shares and the current market price for one of those shares is ~$240.
If folks only care about dividends, why would anyone buy an Amazon share at that price?
You'd hope every publicly-traded long term minded company operates the same way Amazon does. Reinvestment of money they themselves earn in "growth" and still retain a trickle in profits.