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Banks, real estate investment trusts, brokerages and mortgage companies have endured valuation drops that defy explanation.
They've gotten stuck in what we call the product trough, a kind of quicksand where they spend more and more money developing new products while their valuation drops.
Back out the $100 billion it has in cash, and the valuation drops to 3.1 times revenues and 12 times earnings.
Financing startups in Germany The merits of B2B vs. B2C for startups Competing with US players How to deal with a crisis in your startup (down-rounds, valuation drops) Bootstrapping.
The problem is that if you have a £250,000 mid-terrace house, the valuation drops by £50,000 if it smells of curry".
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If land prices fall, some farmers won't feel so good about their last land purchase, but the valuation drop won't put them out of business.
But if Krueger and Mas are right, the official was wrong: in the wake of the tire recall, Firestone's market valuation dropped by more than half, from $16.7 billion to $7.5 billion.
Additionally, median pre-money valuation dropped 79% from 4Q 2012.
Take price-to-sales figures: UMC's previous cyclical bottoms were in 1994 and 1998, when its valuation dropped as low as 5 times sales.
(Amid the turmoil, GFG itself underwent a major haircut as its valuation dropped from $3.4 billion to $1.1 billion).
He later sold Stock Byte to Getty for $135 million, right before their own valuation dropped, in 2006, all cash.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com