It's interesting that the author gets to a valuation of ~$6B, because that's approximately the current valuation of a number of unprofitable internet startups (

It's interesting that the author gets to a valuation of ~$6B, because that's approximately the current valuation of a number of unprofitable internet startups (Yelp ($5.52B) and Pandora ($5.67B) leap immediately to mind). I've been joking with my friends that you can probably subtract about $4B from current internet company valuations to get to the "correct" number given revenues and market sizes...but really, if you take Yelp and Pandora's current valuations down to 35% of their current value (35% is the ratio of $6B/$17B), the number is about right (e.g. $2Bn for Yelp, which gives a price/sales of ~7). It's a little scary to think that the market for growth stocks may be overvalued to the tune of 65%, but the ratio passes the sniff test for a lot of stocks that I'm following.