Take the 2-minute tour ×
Quantitative Finance Stack Exchange is a question and answer site for finance professionals and academics. It's 100% free, no registration required.

ok, so I can't post more than 1 link since I'm a noobie noob, and in the course of correcting this, Stack managed to delete my post. so here's the more abbreviated, slightly irritated author version…

I'd like to calculate the fair market capitalization of the Metropolitan Transportation Authority of New York.

Facts: According to their Wikipedia page, they have: a daily ridership of 11.5 million. According to this NY Post article, the average fare price is USD 1.29.

Conclusions: the MTA's daily revenue is is 14.8M, their annual revenue is USD 5.4B.

Layman's bad calculation:

comparing Nike's annual operating revenue (from wikipedia) of USD 2.5 billion and their market capitalization of USD 40 billion, we extrapolate the factor of 2.16 to determine the MTA's market cap of USD 86.4.

Yes, this is wrong. Please show me how you would do it. (is there a way to take into account that the MTA is a pseudo monopoly, and as such: 1) gets access to cheap loans if needed from the state, 2) isn't afraid of losing market share to private companies, and as such, is less under fire of losing revenue)

Thanks!

share|improve this question

closed as off topic by Karol Piczak, chrisaycock Apr 7 '11 at 17:36

Questions on Quantitative Finance Stack Exchange are expected to relate to quantitative finance within the scope defined by the community. Consider editing the question or leaving comments for improvement if you believe the question can be reworded to fit within the scope. Read more about reopening questions here.If this question can be reworded to fit the rules in the help center, please edit the question.

    
Valuations of this nature aren't quant-related. I'm not even sure why you tagged it as an options question. And the italics you're referring to come from the the LaTeX engine since you've included dollar signs without escaping them. –  chrisaycock Apr 7 '11 at 17:39
    
ok, any idea where this would be a good idea to post on stack exchange? i looked at personal finance, that seemed even more off topic. –  user708 Apr 7 '11 at 17:56