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How else do you find the value of something, other than to ask others what they’d pay for it?
by jbob2000 7y ago
How else do you find the value of something, other than to ask others what they’d pay for it?
- BubRoss 7y agoThat's what you ultimately have to do, but you can take users, engagement, retention, growth and monetization over time compared to competition.
- tim333 7y agoDiscounted cash flow models are popular. Morgan Stanley probably did one to get the 20% undervalued number. Though they are still basically spread sheets with a lot of numbers you have to kind of guess in them.
- marcusverus 7y agoThis approach works for established companies, but breaks down when considering services like waymo, whose value is purely a matter of potential. Waymo is currently worth nothing (if not less) from a cash flow perspective, but potentially worth hundreds of billions in the future, with their effective market value lying at some (entirely subjective) point in between.