Formula used to arrive at company’s market valuation ?
Mar 28, 2019
15 Comments
Lyft IPO at 22b, per share price of $72
How can someone arrive at this number ?
If it is based on future income , how far or rather how many years of discounted income is included to arrive at this valuation ?
comments
In other words, as good as bitcoin value.
But in both cases, it is reverse engineered value. You take the valuation of the company that you are aiming for and divide it with the number of outstanding stocks. That is the value of the stock.
Now how is valuation decided in first place, it varies based on the company. Some can use some multiple of profit, revenue, market size etc.