3 ms·

Valuation is not the same as "yearly income". Not anywhere close to that. If you sell a company for 1 year's worth of income, you're a fool.

• axod 16y ago
  Unless it's a y2k bug company, and it's October 1999.
• samtp 16y ago
  I thought normal valuation was 5 - 7x revenue, not 20 - 40x.
  • cheald 16y ago
    Twitter is arguably not a normal company. They have mindshare that is worth a lot more than Random Internet Startup.