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"I think you can get higher valuations if you have a better governance framework".
Facebook may be able to justify those valuations if it can keep expanding its profit at the pace it did last year, a feat some analysts have said is possible.
But if other social networking concerns go public at even loftier valuations; if its critics retreat and start pretending they were backers all along; and if LinkedIn shares start climbing even farther into the stratosphere — watch out.
These companies can only go out to public markets at those valuations if they have the current run-rate and growth trajectory to support them.
The federal government has prescribed parameters for all valuations if they lead to transactions in which fair market value is mandated, and it also expects transactions to adhere to more generalized laws relating to entities that provide services to Medicare patients.
At the same time, if it did that, investors would have a better idea of their business potential and that could make some wary of sky-high valuations if the numbers weren't stellar — which both Fried and Mike rightly note.
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"Google has a reasonable valuation if you assume its fellow Internet stocks, like Yahoo, are reasonably priced.
Any shareholders who kept stock with a fixed dividend could eventually fight another battle over valuation, if Vodafone wanted to use a squeeze-out to gain 100 percent control.
It can hurt your valuation if the appraiser is from another region, Ms. Bowen-Ha said, a situation that occurs less often with local and regional lenders.
The Abu Dhabi transaction could also provide a benchmark valuation if Carlyle should follow its rivals, the Blackstone Group and Kohlberg Kravis Roberts, and pursue an initial offering.
"If the government were ever stupid enough to introduce a mansion tax, it would be hard for a buyer's lawyer to deny a valuation, if that sum had appeared on the web".
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com