diff --git a/_data/market share spreadsheet.numbers b/_data/market share spreadsheet.numbers index 8769ef6..43a74be 100644 Binary files a/_data/market share spreadsheet.numbers and b/_data/market share spreadsheet.numbers differ diff --git a/mba/ch50.org b/mba/ch50.org index 5988173..4b99a73 100644 --- a/mba/ch50.org +++ b/mba/ch50.org @@ -159,9 +159,15 @@ Calculate YOY for *Revenue*: - Once the company turned a profit in 2017, taxes were applied. ** IP Valuation: Growth vs Value -- Assume an Initial Public Offering (IPO) in 2020 +- *Assume an Initial Public Offering (IPO) in 2020* - Based on the Financial data given, how and what will different types of investors PAY for this company +| Category | 2020 | +|---------------------------------+-------------------| +| Revenue | ₪1,399,440,000 | +| EBIT (Gross Profit - TOE) | ₪657,736,800 | + + *** Growth Investors - focus on *revenue* as the primary metric - especially for high growth companies @@ -172,6 +178,8 @@ Calculate YOY for *Revenue*: \] *** Value Investors +- they look on the long term viability of a product vs it's fast growth +- buy cheap, sell after many years - focus on *current profitability* (earnings, ie EBIT) - lower valuations for high growth companies - high growth companies reinvest profits into expansion, research, etc. @@ -179,3 +187,11 @@ Calculate YOY for *Revenue*: \[ \text{Value Investor Valuation} = \text{EBIT for IPO Year} \times 10 \] + +*** Final valuations based on 2020 IPO +assuming the IPO takes place in 2020 our valuation will be + +| Investor type | Formula | Projected Valuation in 10 Years (2030) | +|------------------+--------------+----------------------------------------| +| Growth Investors | Revenue x 10 | *₪13,994,400,000* | +| Value Investors | EBIT x 10 | *₪6,577,368,000* |