Theranos CEO Elizabeth Holmes' Net Worth Is Now $0, According to Forbes

Theranos CEO Elizabeth Holmes' Net Worth Is Now $0, According to Forbes
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Elizabeth Holmes

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This story originally appeared on Business Insider

CEO is worth exactly $0, 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 , which began with a high-profile exposé from The 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 and the $724 million that it has raised, according to VC Experts, a 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 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.

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