Business Valuation Quotes

Can anyone create an enduring business on the Web, where it's easy to build new companies, and when survival depends on the whims of fickle users? The big lesson of 'Digg' may be simply this: if someone offers you a ridiculous amount of money for a company that wasn't that hard to build, don't think twice. Take the money and run.

If you know how to value businesses, it's crazy to own 50 stocks or 40 stocks or 30 stocks, probably because there aren't that many wonderful businesses understandable to a single human being in all likelihood. To forego buying more of some super-wonderful business and instead put your money into #30 or #35 on your list of attractiveness just strikes Charlie and me as madness.

All intelligent investing is value investing - acquiring more that you are paying for. You must value the business in order to value the stock.

While I accept that large investment rounds will always garner headlines, it's almost as if the magic number of how much cash you've managed to raise has become both a stamp of approval and the main metric for gauging a business's true worth.

Ignore the stock market, ignore the economy, and buy a business you understand.

If you own a wonderful business...the best thing to do is keep it. All you're going to do is trade your wonderful business for a whole bunch of cash, which isn't as good as the business, and you got the problem of investing in other businesses, and you probably paid a tax in between. So my advice to anybody who owns a wonderful business is keep it.

Making a company fit to sell may be the only way to ensure you never need a buyer.

It seems to me probable that of all our economic life the element on which we are inclined to place too low an estimate is advertising.

You should look at stocks as small pieces of business.

When we look at our business, we are not that concerned about short term valuations.

Who would think of buying or selling a private business because of someone's guess on the stock market? The availability of a quotation for your business interest (stock) should always be an asset to be utilized if desired. If it gets silly enough in either direction, you take advantage of it. Its availability should never be turned into a livability whereby its periodic aberrations in turn formulate your judgements.

Valuation depends on several factors. From an investor angle, they look at leadership position, management, and what the company's offerings are. I think these three things got 5/5 for a company like Flipkart, and that is what is driving valuations and growth.

We may well have a competitive advantage buying decent businesses at decent prices. But they won't be fabulous businesses and fabulous prices. There's too much competition and money out there, with many buyout specialists.

You must value the business in order to value the stock.

[In picking stocks] You really have to know a lot about business. You have to know a lot about competitive advantage. You have to know a lot about the maintainability of competitive advantage. You have to have a mind that quantifies things in terms of value. And you have to be able to compare those values with other values available in the stock market.

Investment students need only two well-taught courses - How to Value a Business and How to Think About Market Prices

Valuations are actually quite simple to grasp. A company is only worth what two acquirers are willing to pay for it. Don't you just need to find that one buyer? If there is only one potential company interested in buying your startup, chances are you won't be hearing the word 'billion' in the offer.

I have this ratio that if you divide age of entrepreneur by market cap of company. For Facebook it's one. Every year of his life Zuckerberg has been making $1 billion for investors.

A vote of confidence from Cisco Systems can be very important to fledging technology companies, especially if they have initial public offerings on the horizon.

Economic theory dictates that the value of a company is basically the present value of its future profits. To estimate Facebook's value through its future profits, we need to have a view on its user growth and how this will evolve in the next 10 to 50 years.

Certified Public Accountant

I couldn't have predicted the business would be worth so much. I could see that we would have this sort of market share, but I didn't realise the numbers would be so large.

In our view, though, investment students need only two well-taught courses-How to Value a Business, and How to Think about Market Prices. Your goal as an investor should simply be to purchase, at a rational price, a part interest in an easily-understandable business who's earnings are virtually certain to be materially higher five, ten and twenty years from now.

There's a company behind every stock and a reason companies - and their stocks - perform the way they do.

You can't look at the intrinsic value of gold as you can a business. Gold doesn't give you cash flow, and, at the end of the day, cash flow is what is important. Gold doesn't give you dividends.