In this case, we use last year's earnings.

Profitable.

The company's profitability improved.

So this is trailing 12 months.

So a plus b have to be equal to 50.

Are you using the past 12 months earnings?

And then, finally, they now kind of verified Yep, these look like our customer segments here are our customer relationships.

It just simply says, Hey, this isn't our customer segment.

Are you using future earnings?

That means your revenue to your company would not be 100 but 90.

So let's look at them over the course of one year.

So notice.

Invest financial assistance, but also management assistance.

Maybe Abby made 50 and Ben earned 0.

And we can eyeball it right here.

Because when someone says earnings, are those the earnings last year?

The reason why you are willing to pay a higher Price to

And what's left over for the equity?

So let me switch colors just to ease the monotony.

And they were male and female 18 30 and they were casual fans.

Sometimes we're profitable. Sometimes we're not.

One is, you could kind of flip this.

The earnings I just said, this is actually what happened to the company.

It looks like our profit is jumping all over the place.

Everything on this line would be a valid combination of

So now we add an interesting line.

The next thing is revenue streams.

What you've already put together is a business model canvas with your hypothesis that says, Look, we're really passionate about this product or service, and we think there's a set of customers out there, and we've put together a revenue model, our first hypotheses and saying we're going to make a lot of money, and that's great, but there's really kind of a method to this madness, and there's not only one way to do this, but this is the way we kind of think of it.

We are assuming a very simple world, were the is no taxes, we have no debt, we have no intrest or things

They're all jumbled up as just kind of the company is making this much money.

Abby earned 10 more than Ben.

And that's because they have the same exact asset.

Let's compare EBlT to operating profit.

And why don't you like them as much?

So the price would be 100.

Another type of revenue model is licensing.

It's time to monetise the thing.

And how they were going to create demand was through search ads, social media, stadium promotions.

let's do it on an accrual basis.

Are you with me?

And the first one is that this whole idea about revenue stream, Steve, I get it.

And we add back the interest, at least in this example, we get to an operating profit number.

What does that tell us?

At the end of the month we count your clicks

This is Earnings Per Share, not total earnings.