Hacker News new | ask | show | jobs
by selfselfself 2493 days ago
It does matter because a company's valuation is driven by EBIDA and multiple, both of which depend on the type of business (e.g. SaaS, Cloud Services, Real Estate etc). In fact, Amazon's valuation jumped significantly starting 2015 primarily because of AWS, which is a pure tech play, not so much by its retail business. (In 2015 Amazon started reporting AWS revenue and margins)
1 comments

Multiples and the like are more quick rule of thumb estimating techniques and I hope the valuation is driven more by deeper analysis.