5 ms·
Perhaps I'm missing something important here, but how are these companies (Facebook, Twitter, et al) being valued? I know there is "potential" value here, but w
by endtwist 18y ago
Perhaps I'm missing something important here, but how are these companies (Facebook, Twitter, et al) being valued? I know there is "potential" value here, but who comes up with the actual numbers?
- eru 18y agoEverybody guesses and whoever guesses too high by the largest error, gets his bid accepted. http://en.wikipedia.org/wiki/Winner's_curse http://en.wikipedia.org/wiki/Winner's_curse
- fallentimes 18y agoPoorly. With many assumptions and the ignoring of many variables combined with one (or more) of these business valuation methods: http://en.wikipedia.org/wiki/Valuation_(finance) http://en.wikipedia.org/wiki/Valuation_(finance)