How Much Would You Pay?

How much would you pay for a company that made $100 last quarter? I’ll give you some more details. The company had sales of $527, and it’s expecting sales of $640 to $660 next quarter.

Maybe $2,000? How about $3,000? Or you can be crazy and pay $10,000? If this company were Baidu, the market is offering $180,000. When you put financial numbers in smaller terms, it’s easier to see how crazy Baidu’s valuation is. All I’m doing is dividing Baidu’s real numbers by 15,000. Of course, on the bright side, Baidu used to be worth $350,000 just two weeks ago.

Posted by on August 24th, 2005 at 9:48 am


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