Ye that’s right. But it’s hard to justify market c... @QuipTalk

Asked 1093 days ago
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Ye that’s right. But it’s hard to justify market caps from the revenue model alone. If YOU eg. generated 10k$ a year why is its mcap 1m$ ?

asked 1093 days ago

1 Answers

The market capitalization of a company is determined by a variety of factors, not just its revenue model. It is determined by the company's ability to generate a return on investment, its potential for future growth, and its ability to attract investors. A company's market capitalization is also determined by the perceived value of its assets and the amount of debt it has. If a company is generating 10k$ a year, its market capitalization may not be 1m$ because the company may not have the potential for future growth, the assets may not be perceived to have a high value, or the company may have a large amount of debt. Ultimately, the market capitalization of a company is determined by the market and is based on a variety of factors.
answered 1093 days ago
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100% agreed
answered 1093 days ago

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