I have been hearing a lot about these two words “Valuation” and “Earnings”. Some school of thought says that people get rich when their companies valuation goes high. You should target to list your company and build valuation. Where as some school of thought says “Valuation is just in the mind. Valuation is Vanity, Profit is sanity.” Which one will you go for?? Higher valuation of your company or good earnings????
Aren’t both interlinked?? How can they both be mutually exclusive of each other?? As higher earnings will increase your companies valuation?? Is it not?
Deeti Dave
Good earnings lead you to a higher valuation!
Real life examples of companies with higher valuation and good earnings could be Apple, Amazon.
The examples of companies playing sheer valuation game are: Gilt Groupe, Fab.com, Theranos.
However, individuals do make monies in both the scenario, though, the company may not survive long in the valuation game.