What is the best way to value a company?
Senthilnathan RM
12 replies
Let's be honest. Sometimes, valuation sounds like a gimmick.
Replies
Kayode Odeleye@kayovin1
Who Wants to Be a Unicorn (Unicorn Game)
100% very subjective
Itβs all about willing buyer willing seller especially at earlier stages
Share
I'd say discounted cash flows... i find it the most logical and yet the most difficult :)
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IXORD
You can call people from different areas to evaluate the product and they can give an assessment.
NotesNudge
valuation, huh? feels like alchemy sometimes. numbers, metrics, a sprinkle of hype. but let's get real.
fundamentals first. revenue, growth rate, profit margins. these are the bones.
but a company isn't just numbers. it's a story. the better the story, the higher the multiple. think tesla. not just cars, but a vision for the future.
and let's not forget the team. a strong team can pivot, adapt, survive. put a premium on that.
market size matters too. bigger the playground, higher the valuation. but remember, not every player wins big.
risk is the counterweight. economic cycles, competition, regulation. these can deflate your valuation balloon real quick.
some will say it's more art than science. that's half-true. it's both. the art is in the narrative, the science is in the numbers.
and then there's the x-factor: timing. being the right solution at the right time can exponentially drive value. just ask zoom.
so when you hear a valuation, ask: what's the story? what are the numbers? who's the team? answer these, and you'll see through the gimmick, if there is one.
@shajedulkarim_ , you just reciprocated my thoughts in a beautiful way.
NotesNudge
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@ahmed_yassin2 that's really the easiest & most transparent way