I am building financial model for a ecommerce startup in India. Trying to calculate WACC, but there is no public company listed on NSE or SENSEX in ecommerce industry. In such case which sectors/companies beta I may use? May I use IT Companies (TCS, Infosys) as benchmark for these values?
| +355 | Evercore Intern Seizure | 54 | 7h |
| +67 | JPM M&A is Gone??? Purely Coverage Banking??? | 31 | 6h |
| +58 | Is DCM actually underrated ? | 24 | 17h |
| +50 | How do I understand vs. just memorizing? | 5 | 16h |
| +48 | Losing my personality in Banking | 9 | 17h |
| +47 | Are all Tech / TMT groups sweaty? | 38 | 13h |
| +42 | Associate & Above IB exits | 16 | 3d |
| +32 | Incoming IB Analyst: Best Ways to Prepare? | 10 | 9h |
| +27 | Which groups are ideal for laterals? | 12 | 11h |
| +24 | The good and bad with Wells Fargo | 1 | 17h |
Career Resources
Get instant access to lessons taught by experienced private equity pros and bulge bracket investment bankers including financial statement modeling, DCF, M&A, LBO, Comps and Excel Modeling.
No expert in startup valuations, so take this with a grain of salt but here are the thing that come to mind:
Hope that others will chime in that have more experience
Thankyou IB for your valuable inputs. Allow me to elaborate on the ecommerce startup.
This start-up is still at the research stage with no actual sales or any market presence, which will be serving somewhat similar market as IndiaMART (a private co.)
I am trying to calculate WACC/Discount rate to discount projected FCFF & Terminal value for business valuation. I have risk-free rate but there is no beta or the expected return on market to arrive at market risk premium. Comparable data(beta & return) I have is only of these big ecommerce company (Amazon, Alibaba ) that too from NASDAQ.
Use the build-up method
https://thebusinessprofessor.com/knowledge-base/build-method/
Quam beatae sed quidem voluptate. Qui rerum quia rerum eos.
Dolorem voluptates eveniet dolorem sunt eligendi dolorem est voluptatem. Consequuntur in autem quasi exercitationem quibusdam pariatur dolorem. Sit architecto aperiam fuga numquam enim et.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...