• sugar_in_your_tea@sh.itjust.works
      link
      fedilink
      English
      arrow-up
      3
      ·
      18 hours ago

      Profitable means your revenue is higher than your expenses. Valuation is whatever someone is willing to buy your business for (i.e. what they think the company could earn in the future). They are completely separate concepts, and a highly profitable company could have a low valuation while an unprofitable company can have a high valuation based purely on the future potential of the company.

    • Chozo@fedia.io
      link
      fedilink
      arrow-up
      2
      ·
      1 day ago

      They’re not mutually exclusive. The Hope Diamond is valued at around $300 million, but it doesn’t make any profit.

    • brlemworld@lemmy.world
      link
      fedilink
      English
      arrow-up
      0
      ·
      1 day ago

      Is a private company that can say it’s worth whatever they want it doesn’t make it true. Only public companies have to have the bare minimum of transparency