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0 pointstombert1y ago0 comments

I have no idea how these corporate acquisitions are valued.

Craftsman Tools was sold to Black and Decker for $500 Million. This was and is a respected tool brand with an international presence making physical and tangible products and it is apparently worth 1/64th of Wiz.

I'm not even saying Wiz is overvalued, I don't know, I'm just not sure how they come up with these numbers.

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therealdrag01y ago

I think the main calculus is around estimating future profits. Do they make a profit? Is it a crowded space? Is the market space growing? What assets do they have? People, land, factories, or intellectual IP? Etc etc.

I don’t know the details of either deal but it’s easy to imagine a case where Craftsman tools is just a brand in a crowded market with no special sauce. For example Sears never even made the tools, they outsourced it. Also it sold for 900m, 500m was the initial payment.

tombertOP1y ago

> Also it sold for 900m, 500m was the initial payment.

Yep, you're definitely right, I misread. Still less than a billion.

> I think the main calculus is around estimating future profits. Do they make a profit? Is it a crowded space? Is the market space growing? What assets do they have? People, land, factories, or intellectual IP? Etc etc.

Yeah I guess that makes enough sense, though I have to admit that sometimes it feels kind of removed from reality sometimes.

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