Clouded Judgement 3.22.24 - ERR vs ARR and the Conundrum of AI Revenue Streams Today
Clouded Judgement
MARCH 22, 2024
First, it models out the annual cash flow of a businesses (say 10 years out), and discounts the future value of those cash flows back to present value (this is why software businesses are sensitive to interest rates - as rates go up, so does the discount rate). , you’d build a DCF (discounted cash flow) analysis. Do you have ARR or ERR?
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