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Valuation Expert: Fundamentals Trump Stock Market Hype
8 Dec, 2025
Summary
- Long-term value depends on sustainable returns, not market momentum.
- Retail investors significantly influence mega-cap US company share prices.
- Future potential, not current profits, guides e-commerce valuation.
Tim Koller, a prominent valuation expert, emphasizes that sustainable returns on capital are the true drivers of long-term company value, overriding short-term market momentum. He highlights how the significant influence of retail investors on major US company share prices necessitates a cautious approach to valuation.
For sectors like e-commerce, Koller advises looking beyond current profitability to assess future market dynamics, potential market share, and achievable margins. He stresses that a realistic projection of a company's state in seven to ten years is crucial for determining current valuation reasonableness.
