Numbers Games: Putting a Price on Twitter, Facebook and LinkedIn

What’s Twitter Inc. worth?

Venture investors valued the social networking start-up at $1.13 billion in its most recent financing round in September. Some holders of common stock think it’s worth even more–$1.3 billion. But NYPPEX LLC, a Greenwich, Conn.-based firm that advises buyers and sellers of private company shares on the secondary market, pegs Twitter’s worth at $474 million based on its paltry revenue. And institutional buyers want a big discount, valuing the company at $135 million.

NYPPEX, which includes these valuations in a report it is releasing to clients Wednesday, also believes Facebook Inc. common stock is overpriced, but not by as much as Twitter’s, while LinkedIn Corp. is somewhat undervalued. “Caveat emptor” clearly should be the motto of anyone venturing into this market. “We believe higher industry standards may be needed for research disclosures and price transparency to protect investors,” NYPPEX says.

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