3 ms·
No one pays for companies based on a multiple of their "net worth". No one is going to pay 3x of that "net worth" value and if they did, they probably wouldn't
by whatok 9y ago
No one pays for companies based on a multiple of their "net worth". No one is going to pay 3x of that "net worth" value and if they did, they probably wouldn't have to pay 10% interest in debt. Starting with such assumptions makes it very hard to place any faith in the rest of the example.
- dna_polymerase 9y agoOf course they do. Just look at the stock market and the valuations in relation to Book Value.