New answers tagged valuation
0
Does this seem like a fair way to value our business?
No.
Traditionally there are two ways to value an asset: what it cost to acquire or what its market value is.
The cost approach is straight forward with tangible property such as a factory. With software however it's a grey area. How do we know that your 10 hours are as productive as my 10 hours? ...
1
(converted my comment to an answer)
Valuations are normally a multiple of current/potential earnings or potentially raw revenue. It doesn't matter what you "spent" to get there. Therefore your method is pretty far off.. and entirely in your favor.
Consider these things:
First, that money never existed. You're assuming there's a missed opportunity cost.
...
0
Valuation is more black art than science but there are generally 3 accepted methods
replacement cost basis ... basically what you've spent (or someone else would spend) to get to the same point
discounted cashflow
market peers
You can immediately see the problem(s)
in era where technology is moving so fast, new tools/frameworks make the next generation ...
Top 50 recent answers are included
