Comments on: Relative Value v. Absolute Value http://larrycheng.com/2009/06/24/relative-value-v-absolute-value/ Some thoughts on VC, some on tech, and some on other stuff. Thu, 17 May 2012 23:16:10 +0000 hourly 1 http://wordpress.com/ By: Jesse http://larrycheng.com/2009/06/24/relative-value-v-absolute-value/#comment-4008 Thu, 01 Dec 2011 21:58:59 +0000 http://larrycheng.wordpress.com/2009/06/24/relative-value-v-absolute-value/#comment-4008 Great article!

]]> By: SId http://larrycheng.com/2009/06/24/relative-value-v-absolute-value/#comment-3564 Sat, 30 Apr 2011 04:30:14 +0000 http://larrycheng.wordpress.com/2009/06/24/relative-value-v-absolute-value/#comment-3564 I just started taking an econ class this week and was asked about the Relative v. Absolute size of the U.S. economy. This post got me thinking in some new ways. Thank you.

]]> By: telecom book http://larrycheng.com/2009/06/24/relative-value-v-absolute-value/#comment-2634 Mon, 02 Aug 2010 12:35:48 +0000 http://larrycheng.wordpress.com/2009/06/24/relative-value-v-absolute-value/#comment-2634 yea, this still make confuse about when relative or absolute, but thanks that I know your opinion about this.

]]> By: Relative Value vs. Absolute Value of PLM « Daily PLM Think Tank Blog http://larrycheng.com/2009/06/24/relative-value-v-absolute-value/#comment-568 Mon, 06 Jul 2009 08:24:33 +0000 http://larrycheng.wordpress.com/2009/06/24/relative-value-v-absolute-value/#comment-568 [...] Value vs. Absolute Value of PLM I was reading an amazing post by Larry Cheng: Relative Value v. Absolute Value. This made me think  about how we are developing PLM today. It seems like we are doing this with [...]

]]> By: Tan A K http://larrycheng.com/2009/06/24/relative-value-v-absolute-value/#comment-522 Mon, 29 Jun 2009 14:57:21 +0000 http://larrycheng.wordpress.com/2009/06/24/relative-value-v-absolute-value/#comment-522 Somehow I think this only applies to those who have more, because I have the impression they are the ones who are striving to have more. It’s the basic logic of the rich wanting to be richer.

If you belong to a group of underprivileged people, 1,000 is 1,000 and it wouldn’t matter much whether the people not in their group earn 100,000 or 10. All that matters is they have something enough to spend for their needs.

Diverting to non-societal-issue aspect of it, I guess whether we earn more or less than another group and how we feel about it is affected by two things: the yearning to have more (need I say human nature?) and the need to feel more valuable. I guess both are self-explanatory so I’ll leave it at that and make my response short for once. lol

-Adriaan

]]> By: larrycheng http://larrycheng.com/2009/06/24/relative-value-v-absolute-value/#comment-499 Fri, 26 Jun 2009 01:06:26 +0000 http://larrycheng.wordpress.com/2009/06/24/relative-value-v-absolute-value/#comment-499 Steve – I agree with you. The two examples play off slightly different principals under the same larger umbrella of relative value.

]]> By: larrycheng http://larrycheng.com/2009/06/24/relative-value-v-absolute-value/#comment-498 Fri, 26 Jun 2009 01:05:27 +0000 http://larrycheng.wordpress.com/2009/06/24/relative-value-v-absolute-value/#comment-498 That’s a great example Timothy. A really great one in fact. Anchoring plays a role in so many different things it’s a little scary. We’re not really that rational.

]]> By: larrycheng http://larrycheng.com/2009/06/24/relative-value-v-absolute-value/#comment-497 Fri, 26 Jun 2009 01:03:02 +0000 http://larrycheng.wordpress.com/2009/06/24/relative-value-v-absolute-value/#comment-497 Dave – well investment bankers can create competition around deals which can drive up valuation (sometimes). It plays off the same principal – if another party is interested and willing to pay more then you may be more inclined to think the company is worth more also. If we just valued the company absolutely, we’d say it’s worth $x and that’s it. Whether someone else was interested in the company or not wouldn’t make a difference. But, that’s not really how it works most of the times.

]]> By: larrycheng http://larrycheng.com/2009/06/24/relative-value-v-absolute-value/#comment-496 Fri, 26 Jun 2009 00:59:24 +0000 http://larrycheng.wordpress.com/2009/06/24/relative-value-v-absolute-value/#comment-496 Chris, I think a fact based (or absolute value) valuation would be some sort of DCF where you’re valuing a company based purely on what it can generate. A comps analysis is inherently a relative value analysis. Clearly, VCs use comps far more. We even use the most arbitrary of comps which sometimes is the last round valuation – as though that has something to do with the current value of the company. It applies in so many ways.

]]> By: larrycheng http://larrycheng.com/2009/06/24/relative-value-v-absolute-value/#comment-495 Fri, 26 Jun 2009 00:57:43 +0000 http://larrycheng.wordpress.com/2009/06/24/relative-value-v-absolute-value/#comment-495 Anna – cool that such a concept can make its way into Yoga. I think there is a lot to be said about how all of this relates to self esteem and satisfaction.

]]>