I'm not very familiar with IPOs or buy-outs, but for going concerns it's usual to look at the price-earnings ratio rather than the price-revenue ratio. Ford, f

I'm not very familiar with IPOs or buy-outs, but for going concerns it's usual to look at the price-earnings ratio rather than the price-revenue ratio. Ford, for example, has revenue of $37.67B last quarter but net income of only $991M. With a market cap of $37.31B, that means a price to earnings ratio of 9.5. Microsoft had less revenue, at $30.08B last quarter, but net income of $8.87B. It has a market cap many times that of Ford, at $841.08B both because it has so much higher earnings and because it has a PE ratio of 23.9, which implies that the market things those earnings will grow at a good clip.