Replies to post #3176 on Clover Health Investments Corp (CLOV)

[KJAX]

Anybody read on reddit on buyout calculation? I think it's higher than 9x because of the tech aspect, but still a good guideline.


"Brainstorming here on CLOV for a buyout
In the non public private start up company (not tech) the general rule is 3x revenue for your company. (Growth not included) 2 billion (3x) = 6 billion (which we know it’s worth way more) 6 billion divided by O/S 466 million = share price of $12.85!!!

A more realistic approach is 9x revenue with growth 2 billion x 9 = 18 billion divided by O/S 466 million = $38.56 a share"