Theranos CEO Elizabeth Holmes' Net Worth Is Now $0, According to ForbesThe company has suffered a series of blows, which began with a high-profile exposé from The Wall Street Journal last year that called the company's underlying technology into question.

ByNathan McAlone

This story originally appeared onBusiness Insider

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Elizabeth Holmes

Theranos CEO伊丽莎白福尔摩斯值得完全0美元,according toForbes, the go-to publication for assessing the wealth of the world's billionaires.

Last month Theranos, thetroubledblood-testing startup, voided two years' worth of blood-test results from its flagship Edison machines. This is just the latest in a series of blows for the company, which began with a high-profile exposé fromThe Wall Street Journallast year that called the company's underlying technology into question.

How didForbesarrive at the $0 number?

Here is the methodology:

Forbesspoke to a dozen venture capitalists, analysts and industry experts and concluded that a more realistic value for Theranos is $800 million, rather than $9 billion. That gives the company credit for its intellectual property and the $724 million that it has raised, according to VC Experts, a venture capital research firm. It also represents a generous multiple of the company's sales, whichForbeslearned about from a person familiar with Theranos' finances.

Based on this, Forbes concluded that Holmes' 50 percent stake in Theranos is worth nothing. This is because she owns common stock, and would get paid out after investors who own preferred shares,according to VC Experts. So even if Theranos were liquidated, she wouldn't likely see any of that $800 million.

Wavy Line
Nathan McAlone

Reporter

Nathan is a tech reporter at Business Insider, where he focuses on apps, startups, and streaming services.

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