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Comment by gamblor956 | Hacker News Reader

Unless I'm mistaken, at $37.06/share, multiplied by 1.3m floating shares, VinFast is only worth $48.2 million.

But market cap is price multiplied by total outsanding shares ( public + privately held shares ).

If you and I IPO a company. We each keep 25% of the shares and float the remaining 50%. Using your logic, our insider shares representing 50% of the company has no value.

Also, if the company were to pay dividends, are our shares not applicable?

You can't calculate the value of a company on just the float, unless the float represents all or most of the shares.

Of course having such a small float is ridiculous as well. Seems like the vinfast stock is exists solely for financial shenanigans behind the scenes.

I deliberately excluded the 99% shares that are still held by the CEO because I think that even the valuation based purely on floated shares grossly overstates the value of the company.

VinFast cars are some of the worst cars ever released in the U.S. Test drive one and you'll understand immediately. (And on that note, VinFast has sold fewer than 200 cars in the U.S. to date.)

Does that account for the fact that those shares combined are worth less than 1% of the company?

Are those other 99% shares tasting at this price or are they locked away? If they were included in trading the purchase would likely be significantly lower and so would the valuation

No they're privately owned and not trading.

So that stock price doesn’t apply to them.

If I have 100 total shares of my company, and I put 10% of my company up for sale (10 shares) and the shares trade for $10, then the market has decided my total company is worth $1000.

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