Explain how the process of valuing a high-growth company differs from valuing an established company.

Explain how the process of valuing a high-growth company differs from valuing an established company.
2) How does the total market for a new product differ from a company’s addressable market? Which market is more relevant for forecasting a company’s revenue?
3) For a company with a new product, how can you estimate its potential market share?
Which corporate decisions are mostly affected by the behavioral biases of top managers? Why?
19 December 2000 an article appeared in The Wall Street Journal discussing stock price declines that followed share repurchases made by AT&T, Intel, Microsoft, and Hewlett-Packard. The article mentions that Warren Buffett, chairman of Berkshire Hathaway, criticized firms that engaged in share repurchases. In a letter to shareholders, Buffett noted that share repurchases made sense during the mid-1970s, when many stocks traded below their intrinsic value. However, he argued that conditions changed during the bull market of the 1990s, even though share repurchases had become much more frequent. He also suggested that the motivation for share repurchases had also changed, and that during the 1990s firms bought back their shares in order to pump up their stock prices. Discuss Warren Buffett’s views.

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