3 ms·

What other method is there for us to measure "worth" though?

• blazamos 16y ago
  Future earnings.
• lukeqsee 16y ago
  That is a valid question. I don't know if there is a better way. I was pointing out the flaws in what has proved to be an otherwise very good system. In reality, privately held companies are very hard to gauge in raw worth. When (and if) Facebook has an IPO, we will get a better idea what the broad market values it at, instead of what individuals very close to the company value it at.
• Retric 16y ago
  Actual cash flows are worth more than potential cash flows. Realistically you need to sum the probably of profit discounted by your risk tolerance. A dollar is actually going to be worth a little less in the future, but it’s extremely likely to be worth something. Gold value is a little more random but it’s slightly less likely to be worth nothing. All the way out to lottery ticks which are worth more as entertainment than their inherent cash value.