• The Noob Investor

Valuation...It's Magic

Updated: Jan 15

It's Not Looking Good If A Miracle Is The Key Variable

Traditional companies with a steady source of cash flow and or tangible asset can be valued with either the P/E or P/B approach.

Growth companies without earnings, could likely be valued with the P/S approach.

But when new fancy new age valuation techniques get thrown in, "valuation per eyeballs", EV to EBITDA (and any other stuff you want to throw in), you should take it with a ladle of salt. And if it involves divine intervention, the chances are that its not looking too good.

The following doesn't get old...

"No one is investing in a co-working company worth $20 billion. That doesn't exist. Our valuation and size today are much more based on our energy and spirituality than it is on a multiple of revenue."

As always, "Come for the laughs, stay for the fun times".

#coworking #valuation #joke #funny #investing #divine #P/E #P/B #P/S #growth #price

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