Re:Twitter is raising new cash at 250 million valuation
by rgr on Sunday January 25, 2009 @01:33PM
(#449348)
You can't ignore growth though. In many cases it's much more important than current active users. A product with 1mil active users and a 10x growth rate is much more valuable than a product with 5mil users and a 2x growth rate. The same calculation applies to stock valuations. A stock isn't priced by current earnings, but by expected future earnings.
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