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But this kind of valuation level allows investors to find individual stocks that look attractive.
And when a company is trading at this kind of valuation, there is absolutely no margin for error.
The company wants strategic investors as well as the inevitable private equity funds that would be willing to pay this kind of valuation (traditional VCs won't touch a deal like this).
However, this kind of valuation does not consider possible positive effects of care giving for the informal caregiver [ 62, 63].
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Among well-managed drug companies, Mr. Nadel said, "you can't find that kind of valuation in the developed world or the BRIC countries".
But the company is doing good business with its suite of Web brands — Vulture, Grub Street, Daily Intel and others, and profits from those enterprises could yield the kind of valuation that makes the $55 million purchase price seem cheap.
Are you saying that kind of valuation was actually reasonable?
Fingering a stock with that kind of valuation is a perfectly reasonable call, but the market has a funny way of upsetting reasonable calls.
"We're still a long way from the having the kind of valuation that a company our size should fetch," sighs Serge Tchuruk (pronounced "cha-RUK"), Alcatel's CEO, over a four-course lunch at its tastefully modern headquarters just off the Champs-lyses.
"I think if entrepreneurs think their company is worth [a billion-plus dollars], they still want that kind of valuation," says Greg Gretsch, a co-founder of Jackson Square Ventures in San Francisco.
FourSquare is also rumored to be out raising another round, but it might not quite make it into the $1 billion club because its revenues don't justify that kind of valuation.
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