How much leverage is too much leverage? I guess we'll find out.
More fundamentally, valuations are a metric on stock price and shares outstanding. The latter, too, is a metric on a company’s charter, outstanding (and anticipated) warrant and option and conversion obligations, et cetera.
The concrete quantum is the trade. Everything else is educated conjecture.
he just has to believe that someone else can be convinced it's worth 11k.
According to someone else, probably not.
Companies (as well most all things) are only worth as much as people are willing to pay for it.
When a company like SpaceX raises funds at a particular valuation, you can be sure that they have done a rigorous analysis to figure out what is an acceptable valuation for their target buyers.
Webvan burned through approximately 1.2 billion and accomplished pretty much nothing. Quoting a case study of it from the mid 2000s: "Raised approximately $1.2 billion dollars from private investors and IPO. • Investors: • Goldman Sachs • Yahoo • CBS Inc • Knight – Ridder Co • Softbank Co • Benchmark Capital • Sequoia Capital. "