Vendit, this follows our conversation last week re: AOL and value per subscriber. In June 7th Barrons Jack Grubman says (in cover piece) "Let me echo something that Marc said, and let's throw America Online into this mix. AOL's market cap per subscriber is about $15,000. Cable companies trade at $4,000-$5,000 per subscriber. If you look at local-telephone-company access lines, stripping out things like
cellular and international services, they probably trade at $2,000 per subscriber."
Mr. Grubman, $15000, I don't think so... either that or we teach math here in NC differently.
AOL shares outstanding = 1,082,357,000
AOL value/share 06/04/99 = 118.00
AOL market capitalization = $127,718,126,000
AOL estimated number of subscribers = 20,000,000
AOL market cap/subscriber = $6386
Vendit this also answers more precisely our valuation question the other day. These articles that discuss these items ought to have to date their figures and give the underlying assumptions/values, so we can distinguish between math deficiencies versus timing differences.
David II |
