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So if we apply industry standard valuation techniques, tested against an existing listed tech company Facebook is valued at $13.80. Why did everyone buy it at m
by sparknlaunch12 14y ago
So if we apply industry standard valuation techniques, tested against an existing listed tech company Facebook is valued at $13.80. Why did everyone buy it at more than double the price? Ouch.
- rjtavares 14y agoBasing a valuation on IPO statistics is not an industry standard valuation technique. For an industry standard valuation technique, check Damodaran's analysis made well before the IPO: (http://www.aswathdamodaran.blogspot.pt/2012/02/ipo-of-decade-my-valuation-of-facebook.html http://www.aswathdamodaran.blogspot.pt/2012/02/ipo-of-decade...) His price was $28.