Is there are particular method for banks or individuals when their capital is invested in the company before going public?
To make it more clear, how was the Facebook Inc. and Goldman Sachs deal valued at $50 Billion.
Does it mean Goldman Sachs will have returns double of its investment or more with time or immediately after it goes public? Is this applicable for individuals too? If some high net worth individual would have invested $450 Million in Facebook Inc. would it have been valued $50 Billion?
I'm hoping for a general answer for all companies' stock valuation.