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Airbnb S-1 (Part 1): So How Profitable Is This Thing Really?

View from Seed

Since inception this lodging marketplace (note 1) has enabled 825 million guest stays in over 200 countries with a cumulative booking value of more than $110 billion. To be clear Airbnb posted a GAAP profit in Q3 2020 of over $200M which is impressive given travel remains materially depressed due to COVID.

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How will a buyer value your business?  

Berkonomics

Free Cash Flow Model: [Email readers, continue here…] This method is often used to value privately held companies with a range of five to eight times the cash available to spend after operating expenses are paid. Book Value Method: This is the basic net worth of the Company on the balance sheet.