Congrats on passing CFA Level 1, however I would politely ask that you consider that valuation is an art and not a science. I have done lots of work valuing illiquid shares, for example series A in tech companies, as well as established SME businesses. Of course this is a whole different game to valuing publicly listed liquid stocks and their options--which I trade. I also respectfully reject that the best answer to "what is something worth?" is "whatever someone will pay". I know it sounds similarly cryptic but my answer is, "it depends". Therefore IMHO it's best not to get stuck in one point of view but to try different methods and techniques for estimating value. Some people might say, "build it top down and bottom up" but I say, "build it from all sides". By doing this you get a 'range of value'. There would be valid arguments for the price within the range and different buyers will sit on the continuum. I know this is obvious, but if you are an entrepreneur your job would be to convince a buyer to give you the highest premium possible.
Relating all this back to the post, I'd say that this entrepreneur is trying to do just that... Basically trying to give arguments for as high a valuation as possible.
This is why I believe comments giving an exact figure of $x are invalid insomuch that your method for answering "what something is worth" is not the optimal approach.
Relating all this back to the post, I'd say that this entrepreneur is trying to do just that... Basically trying to give arguments for as high a valuation as possible.
This is why I believe comments giving an exact figure of $x are invalid insomuch that your method for answering "what something is worth" is not the optimal approach.