How Did They Value Stocks? Count the Absurd Ways
Among the harsh realities one stands out. Of all the hot air generated during the great bull market of the late 1990's, none propelled stock prices further than the notion that new economy stocks were a breed apart and should not be held to stringent, old economy investing standards. Internet companies and cutting-edge telecommunications concerns, after all, were revolutionizing the world. So, the thinking went, their share prices deserved equally radical valuation methods. Out went traditional methods used by securities analysis that prized earnings. In came freewheeling measures of worth, like revenue growth, Web site traffic and even customer "share of mind."
http://www.nytimes.com/2001/03/18/technology/18PERF.html?pagewanted=all