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Abstract

The case is aimed to teach how to select the right valuation technique and calculation of relative valuation technique of a corporate. Notwithstanding, the relative valuation technique has certain pros & cons, but nobody can deny the importance of it. In relative valuation, the value of an asset is based upon how similar assets are priced by giving up estimating intrinsic value. The case is based on valuing a publicly traded automobile company, Andrew Motors. There are differences in opinion among staffs of stock broking firm Bullrock Equity over selecting right valuation technique. Ultimately, it was decided to go for relative valuation. The pros & cons of DCF technique & relative valuation are discussed in the case. The reader of the case needs to arrive at the final value of Andrew Motor’s stock while multiples of peer companies are given in the case.
Location:
Size:
Market capitalization INR13,096 crore
Other setting(s):
12-05-2016 to 15-05-2016

About

Abstract

The case is aimed to teach how to select the right valuation technique and calculation of relative valuation technique of a corporate. Notwithstanding, the relative valuation technique has certain pros & cons, but nobody can deny the importance of it. In relative valuation, the value of an asset is based upon how similar assets are priced by giving up estimating intrinsic value. The case is based on valuing a publicly traded automobile company, Andrew Motors. There are differences in opinion among staffs of stock broking firm Bullrock Equity over selecting right valuation technique. Ultimately, it was decided to go for relative valuation. The pros & cons of DCF technique & relative valuation are discussed in the case. The reader of the case needs to arrive at the final value of Andrew Motor’s stock while multiples of peer companies are given in the case.

Settings

Location:
Size:
Market capitalization INR13,096 crore
Other setting(s):
12-05-2016 to 15-05-2016

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