Ask HN: How do you calculate/estimate a companies valuation?

[marilyn]

The news today that Groupon turned down Gooogle has me thinking about determining valuation of a company from its annual revenues. I believe I've heard 3x annual revenues, which would make Googles offer fair.

Is valuation based on annual revenues? Profits? Does profit margin come into play? What about the caliber of the talent/staff?

[brk]

All of the above. There is no set or easy formula. You have to use about 80% data and 20% skill and intuition.