Quotes About Valuation

The value of a company can be derived from adding the value of all future dividends written down to net present value. Therefore, a reasoned view of the future is essential.

Do not let a broker attempt to convince you that the property is worth anything more than a multiple of its existing NOI.

Lynch calculated each potential stock's P/E-to-growth ratio (or PEG ratio) and would buy for his portfolio only those stocks with high growth relative to their P/Es. This was not simply a low P/E strategy, because a stock with a 50 percent growth rate and a P/E of 25 (PEG ratio of ½) was deemed far better than a stock with 20 percent growth and a P/E of 20 (PEG ratio of

You can't come in and value your company at $10 billion if you don't have any sales, or you don't have anything to justify why your company is worth that much.

As the economist John Maynard Keynes once pointed out, buying stocks is like trying to anticipate who will win a beauty contest. You want to choose not the person who you think is the most beautiful but the person you think everyone else will see as most beautiful. So it is with stocks: prices rise not just when a company turns in great performance but when a lot of investors believe that the future will bring even better performance

In auction situations, the final bidder overpays so often that economists call the accompanying feeling of regret the "winner's curse.

Armed with an awareness of how investors value intangibles,

You know what somebody else's fundraise metrics are to you? Irrelevant. You know what your own last round post was? Irrelevant. Yes, I know, not legally, because of those pesky rights and preferences. But emotionally, trust me: it is irrelevant now. We even have a name for this - valuation nostalgia.

Is a currency worth anything if no one wants it? We used to buy shoes in Italy. Remember?

Companies are bought not sold, an investment banker told me that once and it is very true. Basically what it means is you can't control selling your company, you can only sell it if somebody wants to buy it, and you need someone to want to buy it.

Valuations are always much-debated. I try to center on what is the value to us. Is it solving a problems for us? If it is, we find a way to proceed. If the valuation has been overhyped on something and it doesn't make sense, we won't. It's very simple for me. I tend not to worry too much about the valuation. It's really what the value is to us.

Time is our most precious currency. So it's significant that we are being encouraged, wherever possible, to think of our attention not as expenditure but as consumption. This blurring of labor and entertainment forms the basis, for example, of the financial alchemy that conjures deca-billion-dollar valuations for social-networking companies.

I felt the soldiers understood perfectly well that we were making sums out of them—this many safe to spend, this number too high, as if each one wasn't a whole man.

There are no good or bad stocks. The company is either good or bad. Stocks are just stocks.

A stock selling at $100 per share with earnings of $10 per share would have the same P/E multiple (10) as a stock selling at $40 with earnings of $4 per share. It is the P/E multiple, not the price, that really tells you how a stock is valued in the market.

much of Silicon Valley's investment has gone to some eighty "unicorns," with valuations over a billion dollars, which have shunned the overregulated U.S. public market. This is a bizarre and unsustainable situation. Venture capital cannot function without liquidity events. Unless the United States follows China and begins to deregulate its public companies, China will soon take the lead in venture capital as well. The

I went public in 2002 in America, and do you know what Wall Street valued my concession in Macau at? Zero.

The question for Dropbox is whether, when they run out of private sources for funding, they will be able to maintain that valuation when they go to public sources for funding and their valuation is set on the public markets.

we don't recognize it in other places, where these options tend to remain underpriced or not priced at all.

There's a number of companies clearly that we wish we had invested in either at the early or at the moderate stage.

We're kidding ourselves if we think we can opt out of these decisions. Every policy the government adopts, and every individual choice you make, implies that a valuation has been made, even if no one has been honest enough to own up to it or even admit it to themselves.

The entrepreneurs of new firms as much as the management of the old (whether modernizing or not) are forced to do whatever is necessary to attract the players in the casino and then worry as much – or more – about the perfor- mance of their stock valuations as about their actual profits. Financial capital reigns arrogant and production capital has no alternative but to adapt to the new rules; some agents with glee, others with horror.

War and peace type products... cannot be added into a national product total until the differences in the valuation due to differences in the institutional mechanisms that determine their respective market prices are corrected for.

Science without philosophy, facts without perspective and valuation, cannot save us from havoc and despair. Science gives us knowledge, but only philosophy can give us wisdom.