Recent content by tumbledog

I believe that you have an extremely poor understanding of Damodaran's spreadsheet and the mechanics of valuation in general.

"The effect on valuation: Simply correcting the cost of capital in Prof. Damodoran’s spreadsheet to 0% in 2014 (the correct figure that corresponds to guidance to growth on internally generated cash from sales) produces a valuation of $200.56. This is before correcting additional clear errors of...

You do not understand the mechanics of value. Being free cash flow positive does not take the cost of capital to zero. Ever. I can prove this easily; would you buy a perpetual Tesla bond at par with a 0% coupon?

Julian Cox and yourself have conflated the need to raise capital with the cost of capital. They are not the same thing. A zero percent cost of equity means that you would buy Tesla shares with an expectation of earning 0% on that investment in the future (IE giving your money away, and earning...