"The cynic knows the price of everything and the value of nothing." -- Oscar Wilde
Disregarding the technical usage of the word valuation in investing, I see three ways of interpreting the terms in the argument here. The price of Facebook is 33B, simply extrapolating from the price of tiny percentages of Facebook.
The value is related to the price people are willing to pay, but is actually unknown and only exists as a prediction of future cash flows.
The worth is a more nebulous concept and related to how much Facebook improves the world.
It seems like spolsky is talking about the price, and dhh is talking about the value, and making illusions to the worth.
Disregarding the technical usage of the word valuation in investing, I see three ways of interpreting the terms in the argument here. The price of Facebook is 33B, simply extrapolating from the price of tiny percentages of Facebook.
The value is related to the price people are willing to pay, but is actually unknown and only exists as a prediction of future cash flows.
The worth is a more nebulous concept and related to how much Facebook improves the world.
It seems like spolsky is talking about the price, and dhh is talking about the value, and making illusions to the worth.