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Let’s pick some easy numbers to get a feel for sizes Let’s say 70million cars are sold in 2021. And that they sell for 30k each. So that’s 2100 billion. Say a
by GoOnThenDoTell 5y ago
Let’s pick some easy numbers to get a feel for sizes
Let’s say 70million cars are sold in 2021.
And that they sell for 30k each.
So that’s 2100 billion.
Say a 6% profit, we get 126 billion a year on global sales.
Say you expect a mature company to eventually coast along at 20x price/earnings
So a company with 100% market share (and you can’t really price in growth as it’s 100%) should be worth 2500 billion.
I’m no economist, and I may have made a math error somewhere, but I feel this puts a rough upper bound on the valuation