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Death is not zero. Death is a lack of growth. Large multiple are only justified under the assumption of a growing market. Stable/declining markets do not have a
by jayzee 16y ago
Death is not zero. Death is a lack of growth. Large multiple are only justified under the assumption of a growing market. Stable/declining markets do not have a 25x multiple.
- alain94040 16y agoNot quite. Take MySpace again: if they can monetize well the traffic they have left, then they are worth quite a bit, despite the fact that their traffic is shrinking. Growth in early stages is a good indicator of the potential to make money later. As growth stops, it's time to actually make money from the peak you attained. You are not dead at all then, you just can't delay any longer making actual revenue.