Tag: price: earnings ratio

  • Short Story: I’m an Angel – but I like being the Devil’s advocate

    This is a conversation between a founder and an angel investor as they plan to raise the next round of funding for this startup. The angel finds the founder’s estimate of the company’s valuation to be unreal because the the Price to earnings ratio that he calculates. However, the founder reminds him that we are exploring the conversation at an early stage of the company- where Price to earnings ratio do not apply as is.