Hacker News new | comments | show | ask | jobs | submit login

Take a look at the concept of EV (Enterprise Value). http://www.investopedia.com/terms/e/enterprisevalue.asp

It explains my perspective.

As a thought exercise, what is the relevant "price" to acquire a company when the share price has fallen to zero (just before bankruptcy)? Free is the wrong answer.

How much does it cost to acquire a lemonade stand with $1B in the bank, and a market cap of 1.000001B?

Enterprise value will give an accurate "price" in both of these examples.

Guidelines | FAQ | Support | API | Security | Lists | Bookmarklet | DMCA | Apply to YC | Contact