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You are comparing company valuations to annualized revenue (as approximated by some fraction of total knowledge worker compensation). Valuations are (roughly) b
by farrellm23 16d ago
You are comparing company valuations to annualized revenue (as approximated by some fraction of total knowledge worker compensation). Valuations are (roughly) based on the sum of all discounted future cash flows, not just the current year’s revenue.
- zug_zug 16d agoThat's what the 30x instead of 20x multiple is, for a "growth" tech company. There's no strong evidence that openAI or anthropic will have non-linear revenue growth, so I'm not sure what point you're trying to make. Unless you think they'll fire all their engineers and replace them with agents or something crazy?