Why Valuation Does Matter for Tech Stocks

There was a time not all that long ago when the valuation of stocks, tech stocks included, could be calculated based on a discounted cash flow analysis. Sure, there was lots of room for interpretation but actual numbers/results played a major role. That has changed and valuations, specifically for tech stocks, have climbed considerably higher. Now, tech stocks are valued relative to each other and that can make things challenging for investors. What role should valuation play? How are high valuations both a blessing and a curse? Simon Erickson joins Dan Kline on “7investing Now” to do a deep dive into how investors should view valuation when it comes to tech stocks.