Value explained - Deepstash
Value explained

Value explained

Value is the difference between a willingness to pay and a willingness to sell. This can be shown with a value stick.

  • At the top, we have a willingness to pay.
  • At the bottom,  we have a willingness to sell.

The difference between the two is the value the company creates.

The value is split in three ways:

  • Some go to customers. (The difference between willingness to pay and price.)
  • Some go to employees (the difference between willingness to sell and compensation.)
  • The middle wedge is the margin of the company.

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