Facebook

James Mackintosh

Investors have used all sorts of valuation models in the past 20 years. Which to use for Twitter, now that it is preparing to float?

Here’s another handy measure: price per worker. Twitter is more than its staff, of course. But it’s a useful sanity check on any valuation. The higher the value, the more investors have to assume there’s something really special about their assets – factories (a carmaker), intellectual property (think cure for cancer), innovative culture (Apple?), near-monopoly position (once Microsoft, now Google). Read more