‘Durga Pooja’ in Bengal – is a celebration of life. It is an emotion. The festival is also a major economic powerhouse to the region and provides employment and income to artists, artisans and labourers on various scales.
How to calculate the size of the opportunity/market? the approach considered to size the market would help founders to understand/assess the total opportunity and also to design the features targeting the opportunity.
Relative Valuation prices an asset compared to similar assets in market. The process, though not sophisticated, yields better conclusions with less information and short turn-around. The key is to identify the comparable assets; look at their standardised prices and take a call.
Intrinsic valuation identifies the net present value of the free cash flows to the firm by incorporating the risk and growth rate of such cash flows. Growth rate looks at the growth of the cash flows over the period, and discount rate converts the future cash flows to their present value.
Do we know the value of the apartment that is up for sale? By how much is the price of the highly marketed IPO of a new age company over its intrinsic value? From fair value accounting to venture capital investing, from acquisition price to borrowing terms – we need to understand the fundamentals of valuation.