Your back of the envelope calculations do show how seemingly ridiculously overvalued Groupon is.
However, one also has to look at what kind of business you can compare Groupon with. My guess it is taking over part of coupon and other marketing companies.
What kind of valuations do those kind of "old school" companies have? I take the market is rather segmented. That is what kind of cash flow were they producing, what is their price to sales ratio and EPS?
However, one also has to look at what kind of business you can compare Groupon with. My guess it is taking over part of coupon and other marketing companies.
What kind of valuations do those kind of "old school" companies have? I take the market is rather segmented. That is what kind of cash flow were they producing, what is their price to sales ratio and EPS?