> Although that's a theoretical model, and there's many companies that don't pay dividends at all and still command mighty stock prices (e.g. TSLA) this is how real companies are actually valued
Gotta look at stock buybacks too, which are effectively the same thing but more tax efficient for investors. (Though TSLA doesn't do significant amounts of that, and many other giant companies also don't do it relative to profits either, so your general point still stands)
Yes, but from the perspective of the theoretical model, the reason stock buybacks increase share price is that now the (theoretically unchanged) dividend payouts are getting divided among fewer shares outstanding.
The theory is useful to understand that there's some basis to the share value of equities although it probably doesn't have a lot of practical application.
Gotta look at stock buybacks too, which are effectively the same thing but more tax efficient for investors. (Though TSLA doesn't do significant amounts of that, and many other giant companies also don't do it relative to profits either, so your general point still stands)