Did I answer this wrong?

Stupid question, but I had a hirevue ask how I would value a company with no profit. In the moment, I took it as the company had negative earnings, but I realized the question may have meant no profit due to no revenues.

Do you think the question was ambiguous or did I straight up answer it right/wrong? Should I send an email to explain my thought process?

2 Comments
 

What was your response? If you clarified you were assuming the company was loss-making but had revenue and gave a logical response (ie sales multiple) should be ok. Alternatively, if you clarified you were assuming it was a pre-revenue business (eg user multiple) should also be ok. It's ambiguous just need to foot your assumptions and go from there.

 

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