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WeWork has $6.6B in cash and doing $2.5B in revenue. If I use 10X revenue multiple, they would be fairly priced at around $31B. Now, there is risks on debt load
by sytelus 7y ago
WeWork has $6.6B in cash and doing $2.5B in revenue. If I use 10X revenue multiple, they would be fairly priced at around $31B. Now, there is risks on debt load, leases etc but still considering their yoy growth and possible uptick in real estate in 10 year cycle, I still think they would be cheap at or below $30B. People often try to kick the person who is fallen a bit but by Buffet style rules they are good investment opportunity in this environment. They are real business, making real money and have real growth.
- arcturus17 7y agoYou’d seriously invest in it at a 30B valuation?
- unreal37 7y agoWhy are you using 10X revenue multiple on a real estate company? Other RE companies are valued at 4X.[1] So $10B seems to be the value based on those numbers and their industry. However, they're losing tons of money. So that has to put them below the average. [1] http://pages.stern.nyu.edu/~adamodar/New_Home_Page/datafile/psdata.html http://pages.stern.nyu.edu/~adamodar/New_Home_Page/datafile/...