Theranos CEO Elizabeth Holmes' net worth is now zero, according to Forbes

Before you go, we thought you'd like these...
Before you go close icon

Theranos CEO Elizabeth Holmes Reportedly Has Net Worth of 'Nothing'

Theranos CEO Elizabeth Holmes is worth exactly zero dollars, according to Forbes, the go-to publication for assessing the wealth of the world's billionaires.

Last month Theranos, the troubled blood-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 from The Wall Street Journal last year that called the company's underlying technology into question.

How did Forbes arrive at the $0 number?

Here is the methodology:

FORBES spoke 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, which FORBES learned about from a person familiar with Theranos' finances.

Based on this, Forbes concluded that Holmes' 50% 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.

NOW WATCH: There's an incredible new workout on water where you run on floating mats

RELATED: Notable Women CEOs

15 PHOTOS
Notable Women CEO's
See Gallery
Theranos CEO Elizabeth Holmes' net worth is now zero, according to Forbes

Carol Meyrowitz

TJX Companies 

(Photo by Essdras M Suarez/The Boston Globe via Getty Images)

Indra Nooyi

PepsiCo.

(AP Photo/Mark Lennihan, File)

Ellen Kullman

Du Pont

(AP Photo/Richard Drew)

Ursula M. Burns

Xerox

(Photo by Ron Sachs-Pool/Getty Images)

Marissa Mayer

Yahoo!

(Photo by Evan Agostini/Invision/AP)

Rosalind Brewer

Sam's Club

(AP Photo/Phelan M. Ebenhack)

Ginni Rometty

IBM

(AP Photo/Mark Lennihan)

Mary Barra

General Motors

(AP Photo/Paul Sancya)

Denise Morrison

Campbell's Soup 

(AP Photo/Mel Evans)

Beth Mooney, chief executive officer of KeyCorp, speaks during an interview in New York, U.S., on Thursday, Dec. 6, 2012. KeyCorp, which has 1,059 branches, is targeting $150 million to $200 million of expense reductions by December 2013, the Cleveland-based lender said in a statement. Photographer: Scott Eells/Bloomberg via Getty Images
Heather Bresch, chief operating officer of Mylan Pharmacueticals, sits in her office April 8, 2008, in Canonsburg, Pa., decorated mostly with artwork from her children's school activities. Bresch talked with The Associated Press about the controversy over her executive MBA from West Virginia University. (AP Photo/Dale Sparks)
Lynn Good, president and chief executive officer of Duke Energy Corp., listens during an interview in New York, U.S., on Wednesday, Sept. 28, 2016. Duke is moving to a lower carbon future regardless of who is in the White House, Good said. Photographer: Cassi Alexandra/Bloomberg via Getty Images
Debra Cafaro, chairman, chief executive officer of Ventas Inc., speaks during an interview in Chicago, U.S., on Wednesday, Aug. 25, 2010. Ventas, the second-biggest U.S. health-care real estate investment trust by market value, agreed to buy Nationwide Health Properties Inc. for about $5.7 billion. Cafaro will lead the combined company. Photographer: Tim Boyle/Bloomberg via Getty Images
Gracia Martore, President and CEO, Gannett Co. Inc., speaks at the UBS 40th Annual Global Media and Communications Conference in New York, December 5, 2012. REUTERS/Carlo Allegri (UNITED STATES - Tags: BUSINESS)
of
SEE ALL
BACK TO SLIDE
SHOW CAPTION +
HIDE CAPTION

See Also:

SEE ALSO: A patient reportedly went to the emergency room based on a blood test that Theranos had to retract

Read Full Story

Want more news like this?

Sign up for Finance Report by AOL and get everything from business news to personal finance tips delivered directly to your inbox daily!

Subscribe to our other newsletters

Emails may offer personalized content or ads. Learn more. You may unsubscribe any time.

From Our Partners