Valuation Multiples Quotes

Of all the big Internet companies, Yahoo is the most highly valued on a price-earnings and price-sales basis.

Of course, the discounting of future earnings should hurt all stocks. But it should hurt technology stocks more than others, because so many of them are valued at extremely high levels relative to their current earnings.

Why do investors seem to care about 'billion dollar exits?' Historically, top venture funds have driven returns from their ownership in just a few companies in a given fund of many companies.

VCs like acquisitions as much as IPOs because the acquiring companies often can rationalize paying large multiples over the current valuation of the startup.

There's never been a good period of venture capital when prices weren't high.

Venture capital is always wanting to go up market.

The more evident it is that a certain company is going to become the market leader in a big market space, then the higher the valuation goes because the risk has been dramatically reduced.

Early investors in Uber and Airbnb, though they remain private companies, have valued them at stratospheric multiples based largely on the notion that Uber will transform and dominate local transportation and Airbnb will revolutionize the hotel industry.

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.