Ask HN: How did Fast get a $580mm valuation?

Re:Ask HN: How did Fast get a $580mm valuation? by huijzer on Tuesday April 12, 2022 @02:40AM (#30999396)

Because everything is crazy expensive currently. We‘re in a bubble. Look at the valuation of WD-40, Bitcoin or Shopify for example. WD-40 had a 500k annual revenue and is valued at 2.6 billion. Their free cash flow is only about 100k, so they would need 26 years to buy all stocks back at the current valuation assuming no growth in earnings.

As another example look at the current PE ratio of the companies in the S&P 500: https://www.macrotrends.net/2577/sp-500-pe-ratio-price-to-ea.... This shows that prices are unusually high compared to earnings.

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Re:Ask HN: How did Fast get a $580mm valuation? by jorams on Tuesday April 12, 2022 @03:07AM (#30999559)

You're off by a few orders of magnitude for WD-40 (WDFC). They had 488 million in revenue for 2021.

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Re:Ask HN: How did Fast get a $580mm valuation? by huijzer on Tuesday April 12, 2022 @05:30AM (#31000407)

Thanks for pointing that out. I meant 500 million annual revenue and 100 million annual cash flow.

The 26 years back-of-the-envelope calculation was correct though: 2.6 billion / 100 million = 26 years.

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Re:Ask HN: How did Fast get a $580mm valuation? by rohitb91 on Tuesday April 12, 2022 @02:53AM (#30999476)

You mean 26,000 years

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