The dubious valuations Wall Street puts on companies is put on the fire by Jason Fried of Basecamp quite wonderfully over at

In order to determine the valuation of companies, Bhatnagar typically applies the following formula: [(Twitter followers x Facebook fans) + (# of employees x 1000)] x (total likes + daily page views) + (monthly burn rate x Google’s stock price)-squared and then doubles if it they’re mobile first or if the CEO has run a business into the ground before. Bhatnagar admits the math is mostly a guess but points out that “the press eats it up.”

Well done!

Date captured: 2015-12-02 12:14:00 -0600