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outlawauron on 14 November 2017
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fatslob-:O said:
outlawauron said:

What?! That's not how companies get valuated. Maybe internally, but to critics (like Forbes who make those lists) and investors, it's easy to see that it's not the case.

To an accountant that's exactly how they would value companies, through "total equity" ... 

With investors and stocks, it's totally based on speculation ... 

I quite like using total equity as a measure of worth since it's more grounded but even that's still subject to speculation ... 

There is only value in something if people believe it to have value such as money even though it's just printed paper ... 

Yes, that is how an accountant does their books, but that's not at all how the conversation was headed. It was about perceived value of each company. 



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