Profit is the primary objective of a company. Gross revenue is only interesting if there is reason to believe that more of it can be turned into profit, expandi

Profit is the primary objective of a company. Gross revenue is only interesting if there is reason to believe that more of it can be turned into profit, expanding margins. Companies can be valued after many criteria: innovation, market share, revenue, leadership etc. But the value of all of them is in their potential for generating future profits. The other fundamental method for valuation is to look at the balance sheet and value the company by net assets.