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No one needs to buy all of a thing for it to be valued at some price. If you buy half for 80B, is that not an argument for the whole thing being 160B? If you bu
by ChrisLomont 6y ago
No one needs to buy all of a thing for it to be valued at some price. If you buy half for 80B, is that not an argument for the whole thing being 160B? If you but 1/10000th for X, then the same argument works.
2019 Revenue > $15B. It's not uncommon for companies to worth 10x revenue. In fact, when I do a first pass at company worth, 10x revenue is where I start.
For an experiment ( which I have done), take all publicly traded companies, take their market cap and their revenue, divide, and you get pretty much 10x. Check standard deviation to get even more knowledge about this simple company valuation estimate.
This alone makes it plausible $160B is in the ballpark. Considering the parent company is worth $1.2T, YouTube being worth 0.160T is not that ludicrous.