4 ms·
So by this math, if I buy a company's 0.001% for $1000 its valuation becomes $1B? huh!
by kingsidharth 14y ago
So by this math, if I buy a company's 0.001% for $1000 its valuation becomes $1B? huh!
- kingsidharth 14y agoDon't just down vote, answer the question?
- BlackJack 14y agoWell if you bought a 0.001% stake for $1000, then the valuation would be $100M, not $1B. You probably mean either $10000 or 0.0001%. Regardless, that's the idea, yes. If a company had a million shares, and you bought one for $1000, you're essentially saying that the present value each of those shares is worth $1000, so the company is worth $1B.