
What is WeWork worth? We redid their valuation from scratch - andrew_pr
https://preferredreturn.com/blog/wework-ipo-valuation-2019-analyst-perspective/
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mdorazio
Disappointing article. Here's a pithy summary: "What is WeWork worth? Answer:
Whatever you want to believe it's worth." Worth a read if you want to see the
various levers analysts use to come up with valuations, but there's not an
actual "grounded in reality" answer here to be had.

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andrew_pr
Thanks for taking the time to read the piece. The main point is that the value
of anything is really based on what the collective public believes it's worth.
The interest on long term treasury notes is fairly low and stable becomes the
collective belief that the U.S. is stable, and the collective belief doesn't
deviate from each other by much (right, wrong, or indifferent). The more
disparity about the future paths of something, the wider the range. The goal
is to try to understand what those different beliefs are, and see which one
you align best with. SoftBank seems to believe the story of high growth with
improving margins. The sellers seemed less optimistic (which is why they sold,
and SoftBank purchased). With all of that said, we believe that there are a
number of stories (and futures) that could be true—in our analysis, that
results in a valuation as low as $10B or as high as $100B, with the most
likely value being between $10B and $20B, and the most reasonable value being
around $15B, given what we know now.

