4 ms·
Just want to point out that in many industries a revenue multiple of less than 1.0 is expected [1], such that generating greater than $15 billion in revenue doe
by fitchjo 10y ago
Just want to point out that in many industries a revenue multiple of less than 1.0 is expected [1], such that generating greater than $15 billion in revenue does not automatically result in a company worth $15 billion. That being said, FB's net assets are $50 billion (and it's market cap is much, much (holy cow it's alot) higher), so clearly those that got in at a $15 billion valuation are very happy right now.
[1] http://pages.stern.nyu.edu/~adamodar/New_Home_Page/datafile/psdata.html http://pages.stern.nyu.edu/~adamodar/New_Home_Page/datafile/...
- arcticfox 10y agoSoftware, for good reason, is not one of those industries (like aerospace, home furniture, etc.). Incremental capital cost in software per user is vanishingly small compared to building planes or sofas.