3 ms·
Cash is king. Interim metrics are a necessary evil. I find the OPM method interesting. Has anyone here used this? Is it always more conservative? Is it a b
by mathattack 10y ago
Cash is king. Interim metrics are a necessary evil.
I find the OPM method interesting. Has anyone here used this? Is it always more conservative? Is it a better predictor of realized value?
- PhillyPhuture 10y agoOPM is terrible. Even the academics realize it (I think). This paper evaluates the analysis. There's a caveat on pg. 24. GIGO. In my opinion, it's not just a caveat. It's a killer. I'm not sure what the overarching societal value to applying OPM to private, illiquid company valuations could be. http://repository.upenn.edu/cgi/viewcontent.cgi?article=1035&context=wharton_research_scholars http://repository.upenn.edu/cgi/viewcontent.cgi?article=1035...
- mathattack 10y agoIt seems to require knowing the equity volatility and IPO price in advance. That is shaky. But isn't it that it just needs to better than other methods?