4 ms·
3x revenue is pretty standard for businesses that aren't really growing anymore. Seems like a pretty solid deal to me.
by carpal 19y ago
3x revenue is pretty standard for businesses that aren't really growing anymore. Seems like a pretty solid deal to me.
- nostrademons 19y agoBusinesses that aren't growing anymore usually get valued based on earnings. The P/E of the S&P 500 is about 20 (perhaps a little less after the recent market turbulence), which means that HotOrNot's price would be about half the average publicly-traded corporation, including all the old-line manufacturing businesses and companies in decline.
- carpal 19y agoP/E ignores a lot of things, too. Old-line manufacturing businesses usually have a ton of assets (machinery, land, etc) that boost their valuations. I doubt HotOrNot has much more than the brand name and domain, as far as assets are concerned.