Re:Ask HN: Why do companies care about their own valuation?
by pixiemaster on Wednesday May 13, 2020 @07:38AM
(#23165811)
It’s a feedback to the CEO how good their company is. Buy putting a price on it (valuation), she/he gets feedback on how she/he is contributing to value increase.
in theory this factors in all aspects, e.g. more than just revenue, because it’s a comparison with other companies as well.
reality IMHO: it’s bullshit to manage short term valuation only.
in theory this factors in all aspects, e.g. more than just revenue, because it’s a comparison with other companies as well.
reality IMHO: it’s bullshit to manage short term valuation only.