Originally posted by safesys
There are lots more factors than just direct earnings from an asset that affects sales value - especially vanity sales (the bigger ticket stuff).
But taking just that single element, corporates know what they are getting with .com, they know its recognized and they know it carries prestige and good marketing roi (assuming its a good root term) - that's grounded in the here and now.
For a single period, Return on Investment is generally calculated as ((ending value - starting value) / starting value) - 1.
For multiple periods, Return on Investment is generally defined as the discount rate that sets the Net Present Value of current and future cash flows equal to zero.
If any investor wishes to pay more for an asset than the sum of discounted future cash flows in consideration of "vanity" or any other reason, they can do so, but it will have a negative Net Present Value. For profit-maximization, valuation should be based on the sum of discounted future cash flows.... which has everything to do with expectations of the future (and the risk or safety thereof).