3 ms·
Two answers, first, the cynical: Keep in mind that equity reflects possibilites, specially in startups. I would say that most of the value of a startup are jus
by eduardordm 14y ago
Two answers, first, the cynical:
Keep in mind that equity reflects possibilites, specially in startups. I would say that most of the value of a startup are just changes of succeeding. Read: How much does a lottery ticket is valued?
Second, more useful:
You need choose a target P/E ration, and calculate. PE == Share_value / Earnings_per_share.
30 is a reasonable target. The problem is, in tech you can get P/Es around 200-300 (which is stupid).