4 ms·

How do they really perform valuation? I don't understand why Evernote and Instagram are worth virtually the same.

• nicksergeant 15y ago
  Take "best-case-scenario annual revenue" and multiply by 10?
• gklitt 15y ago
  Do you mean that Evernote should be valued at less than Instagram? I think the opposite is true. Evernote has demonstrated that it can monetize its user base, and it has a strong lock-in effect (I store all my stuff there so it's not worth leaving to a competitor). I happily pay for Premium just like many others. Instagram, on the other hand, has a fantastic free app, a giant user base...and no revenue.
• chimeracoder 15y ago
  'I'm willing to give up x% of my company. How much cash will you give me for it?' In theory, that should be the same as saying 'my company is worth y% of what company Z is worth, so this is how much cash you need to pay in order to get x% of it', but in practice, you can't always make that conclusion based on how people behave.