That's still way more expensive than most companies.

And why don't you like them as much?

Well in this case, you're uncertain about the earnings stream.

They're going to make 0.35 in 2009 as well.

Do we go for lots of users and then say if we get 10 million people the revenues will come?

Profitable.

This was a startup killer for decades.

And B is expected to make 4 per share.

So a plus b have to be equal to 50.

So it has a Price to Earnings of 50.

Are you using future earnings?

So let's look at them over the course of one year.

So notice.

Invest financial assistance, but also management assistance.

It's called the Extractive Industries Transparency Initiative.

Maybe Abby made 50 and Ben earned 0.

And we can eyeball it right here.

Because when someone says earnings, are those the earnings last year?

Divided by 0.35.

The reason why you are willing to pay a higher Price to

And what's left over for the equity?

So let me switch colors just to ease the monotony.

And they were male and female 18 30 and they were casual fans.

If you're doing a clone market that is copying a US business model in a foreign country, that probably is the second closest to immediate profitability because you know the market exist that you just need to implement it in your local country.

The difference with Ecosia though is that, in Ecosia's case, it draws the revenues in the same way, but it allocates 80 percent of those revenues to a rainforest protection project in the Amazon.

The other side are the people using Google Adwords to look for keywords.

The earnings I just said, this is actually what happened to the company.

Everything on this line would be a valid combination of

So now we add an interesting line.

We are assuming a very simple world, were the is no taxes, we have no debt, we have no intrest or things

So let's say the revenue or the sales in this case in a given period, let's say that this is an income statement for 2008.

Abby earned 10 more than Ben.

And that's because they have the same exact asset.

Let's compare EBlT to operating profit.

So the price would be 100.

Another type of revenue model is licensing.

It's time to monetise the thing.

And how they were going to create demand was through search ads, social media, stadium promotions.

Let's say that we don't know that they're truly equal.

Are you with me?

When I look at an existing market, it's clear that if you've match those market needs, you could be achieving profitability the soonest.

And the first one is that this whole idea about revenue stream, Steve, I get it.

And we add back the interest, at least in this example, we get to an operating profit number.

What does that tell us?

At the end of the month we count your clicks