“Valuing a business is part art and part science.” ~ Warren Buffett
Pinterest makes almost no revenue and it is still valued at $5B. How can we explain its high valuation?
One cannot deny the importance of valuation plays in portfolio management, acquisition analysis, and in corporate finance. Knowing what an asset is worth and what determines that value is pre-requisite for strategic decision making in business.
The process of valuation can seem elusive and even the experts remain divided by the two extreme views of the valuation process. At one end are those who believe that valuation is a hard science, where there is little room for analyst views or human error. At the other end are those who feel that valuation is more of an art, where analysts can manipulate the numbers to generate whatever result they want.
The truth lies somewhere in the middle: we can use some tools to generate a relative value of the company in the market but we must be content with some uncertainty.
Join us this Founders Drinks with speaker George Mathew, Managing Partner at Futurebooks, as we discuss essential factors in estimating business value, types of valuation models, and conditions that affects the valuation of the business.
At the end of the session, walk away equipped with skills and tools to help you estimate the value of your company.