Am I doing the math right? ~$5 billion market cap / ~7.2 million active listeners = ~$700 per active listener
Penetration is ~ 7.5% so if penetration becomes 100%, i.e. people ONLY listen to Pandora that would be about $50 market cap per listener at today's valuation. Or will active radio listeners go up in the future through population growth etc?
What is the $ value of 1 listener? If they can charge $36/year and make 10% margin as a mature business, once they get to 100% saturation, it seems that even $50/listener is a little high valuation.