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Market cap / valuation comparison is only meaningful if you compare companies in the same industry. For example, priceline.com has market cap of about $21B. In
by sdizdar 16y ago
Market cap / valuation comparison is only meaningful if you compare companies in the same industry.
For example, priceline.com has market cap of about $21B. In that respect, facebook valuation is not so high.
- xenophanes 16y agoUmm, no. Exactly the opposite. If the market caps in one industry were wrongly valued relative to another, then investment would move (b/c there would be opportunity for arbitrage and profit). Why did you think the economy was divided into separate and unrelated sections?