3 ms·
Surely one would expect to pay at least a few times annual revenue for a country?
by dsr_ 6y ago
Surely one would expect to pay at least a few times annual revenue for a country?
- noitpmeder 6y agoNot if you use a community adjusted ebitda valuation.
- nostrademons 6y agoThat's revenue <=> GDP, and roughly earnings <=> tax revenues. I believe those are equivalent comparisons: revenue and GDP both include all internal transactions, while earnings and tax revenue reflect what's available for management/government to spend at their discretion. If a tech company were buying the country, market cap would be the appropriate metric, and market caps for those tech companies are in the $2T range, more than enough to pay a few times annual GDP.