QUARTERLY REPORT 1Q 2026 - Valuation in an Age of Disruption
How much future growth are you paying for?
The first quarter of 2026 marked a turning point
A focus on growth has shifted
These improvements caused many to consider paradigm-shifting implications
A loss of confidence in asset-light business models
What Happens When Growth is Disrupted?
As we have already seen, AI proliferation could make these long-duration investments riskier
Within the equity universe
While true disruption can be catastrophic
Similarly, a disruption that causes even a slight degradation
In 1Q 2026, software sector performance showed
Dividends are a Governor
Dividend investing creates a natural barrier
In an age of disruption, companies with a lower P/E
To more fully explain our analysis
Reference Guide to Valuation Modeling
Back to Basics - Valuation
Back to Basics - Valuation (continued)
Discounted Cash Flow Models
Discounted Cash Flow Models (continued)
Terminal Value
Terminal Value (continued)
The P/E Connection
The P/E Connection (continued)
The P/E Connection (continued)
The P/E Connection (continued)
The P/E Connection (continued)
The P/E Connection (continued)
The P/E Connection (continued)
Successful investing in growth names
Disclosure
Definitions