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by airstrike 2900 days ago
This is a pretty useless metric. It's really only used as a proxy to compare the value of similar companies in the same industry when no other data is available.

You know what measures your economic value as an employee? Wages.

Your value as an employee is that which is lost by removing you from the equation. If you can be replaced by virtually anyone, your value approaches zero.

2 comments

Wages can diverge quite easily from the economic value you provide.
This is ridiculous. Wages measure the cost of hiring you, not the value. If the economic value of employees were their wages, then there would be no profit.
The value of the firm is greater than the sum of its parts.