It's likely talking about all future dividends (discounted for time value). Startups will naturally reinvest their earnings to grow, but at some point, pursuing growth will be too costly and the best use of their earnings will be to return it to the owners as dividends.
If a company were guaranteed to never return anything to owners, then it would be more like speculating in the future value of a baseball card than an actual investment.
It may not be a practical way to calculate value, but it's not crazy either.
If a company were guaranteed to never return anything to owners, then it would be more like speculating in the future value of a baseball card than an actual investment.
It may not be a practical way to calculate value, but it's not crazy either.