Market Cap Per Employee

Hindsight is 20/20 of course, but when looking back on the tech bubble you have to wonder just how far out of wack things got. Case in point: Cisco Systems. At its peak, Cisco was the largest company in the world by market cap with a value around $600 billion. There were fewer than 30,000 employees which means the stock market assigned an average of $20 million of value per employee.

When the bubble burst, Cisco proceeded to lose $500 billion in value over the following thirty months.

Preet Banerjee
Preet Banerjee an independent consultant to the financial services industry and a personal finance commentator. You can learn more about Preet at his personal website and you can click here to follow him on Twitter.
Related Posts
Showing 3 comments
  • Traciatim

    Is there a quick easy way to get employment numbers from public companies?

  • Preet

    @ Traciatim – I was just poking around on a few corporate websites and it seems that if you click on the “about” section the number of employees is usually farily prominently displayed. I’m sure the numbers aren’t always up to date (especially lately), but if you are looking for ballpark figures that’s a good start. Other than that, you could get official numbers from the audited financial statements or annual investor reports.

pingbacks / trackbacks