# Prof. Aswath Damodaran is interviewed about valuations of startups

1 Faculty News January 13, 2014 ![The Economic Times logo](/sites/default/files/styles/246w/public/assets/images/con_032922.jpg?itok=VCGfauqd)>

Excerpt from the [Economic Times](http://economictimes.indiatimes.com/news/emerging-businesses/startups/country-growth-stories-are-taking-back-seat-to-sector-growth-stories-aswath-damodaran/articleshow/28718886.cms) -- "Last year, we saw social media companies going public. Four months ago I was debating an analyst who was arguing Twitter was worth four times more than what it is. I asked why do you think it is worth so much. He said the size of the advertising market is going to be huge. I said yes, but it does not mean Twitter is worth a lot. I don't see the direct link. If you think Twitter is going to be winner tell me who the losers are? The analyst was projecting revenues of Twitter of about $45 billion. I said okay, but the online advertising market is right now only $120 billion."

[Read more](http://economictimes.indiatimes.com/news/emerging-businesses/startups/country-growth-stories-are-taking-back-seat-to-sector-growth-stories-aswath-damodaran/articleshow/28718886.cms)