

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

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

