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Ask HN: How do you calculate/estimate a companies valuation?

1 pointsby marilynover 14 years ago
The news today that Groupon turned down Gooogle has me thinking about determining valuation of a company from its annual revenues. I believe I've heard 3x annual revenues, which would make Googles offer fair.<p>Is valuation based on annual revenues? Profits? Does profit margin come into play? What about the caliber of the talent/staff?

1 comment

brkover 14 years ago
All of the above. There is no set or easy formula. You have to use about 80% data and 20% skill and intuition.