What is the value of a business with zero income?
What is the value of a business with zero income?
I got this as an interview question. Tough one to answer!
What is the value of a business with zero income?
I got this as an interview question. Tough one to answer!
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Not saying its the right answer, but I'd answer either:
What someone is willing to pay for it
At least the value of its net assets
Once again, not saying its OK, it's just what immediately came to my mind after reading this
Depends on the reason it has no income. In the case of Amazon the value is $1.2 trillion. For some businesses, it may have a negative value. For startups it could be very valuable. Depends on the reasons causing zero income (no revenues, high costs, high capex by choice, etc).
Greater of its discounted future cash flows or market value of assets
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