25 for a huge tech company is insane, unless there is reason to expect burgeoning profits.
The implication is that if you bought them outright, they are going to generate the present level of profits for 25 years before you pay off your investment.
How many tech companies have lasted 25 years? How many will last 25 more?
25 makes sense for a startup with potential for explosive growth, not for an established company.
Fair, but they are vulnerable to having the rug innovated from out under them like the holy-grail-of-investment railroad companies of yore. I wouldn't bet my retirement on the current crop of big tech companies lasting 20-30 years.
The implication is that if you bought them outright, they are going to generate the present level of profits for 25 years before you pay off your investment.
How many tech companies have lasted 25 years? How many will last 25 more?
25 makes sense for a startup with potential for explosive growth, not for an established company.