With the world’s most awaited IPO filing finally out, let’s have a look at what the valuations look like.
The charts below shows FB financials, valuations, and peer analysis. I have assumed a slowing net income growth due to the base effect. There are 3 IPO scenarios here, $5bn raised at different prices. Scenario 1 gives us a pre-money valuation of $70bn, which is the lowest valuation figure I’ve come across in news articles. Scenario 2 considers the current share price of FB on sharespost.com, and Scenario 3 is at the rumored issue price of $45.
After weeks of discussions and many trips to and from the drawing board, the TresVista Blog team is proud to present the 2nd edition of Investomania. For the uninitiated, Investomania is the platform to stand up and be counted amongst the best financial minds here at TresVista. We believe the best part of working in finance, is to be able to be in a position to make sense of it all. Market dynamics change every day, subject to the forces of the expected as well as the unforeseen. It is the ability to see an opportunity that no one else has picked up on that separates the best from the rest. This is the chance to lay down the mark on where you stand.
What we’re looking for, very simply put, is a publicly listed company (less than USD 5.0bn market cap.), operating in any sector, in any country, that you believe will double your money in three years’ time. Whether it’s a household name set to take over the world, or an obscure small-cap at the cusp of revolutionizing an industry, it matters not as long as the rationale is sound, and your belief is unshakeable. As before, participants will get the opportunity to present their ideas to Sudeep, the winner being the person with the most valuable idea and the most convincing pitch. Straightforward. Or is it?
Wall Street, a classic film from the 80’s was a movie that gave most of us here at TresVista an insight to the world of finance. It is therefore one of the movies that holds a special significance to us. Gordon Gekko – the character who immortalized the phrase “Greed, for lack of a better word, is good” was someone everyone hated, yet wanted to be. It’s no surprise then that the sequel ‘Wall Street: Money Never Sleeps’ generated huge anticipation and excitement around the office.
We realized that this movie was a movie we all wanted to watch together and planning began to go watch the movie the day it was released. We decided to attend the 8.00 PM show at Fame Adlabs Andheri.
A few weeks ago, Dell put in an initial bid of $18.00 per share for 3Par, a cloud computing service provider. This bid was at a premium to 3Par’s share price, which had been hovering around $9.50 for most of the year.
Now this would have been an average acquisition in the tech industry, if matters had stopped there. They didn’t; soon after Dell put in its bid, HP placed a counter offer valuing each share at $24.00. Dell responded with a bid of $24.30, only to be countered again by HP’s offer of $27.00.
For now, HP seems to have won the bidding after it raised its final offer to $30.00 per share. 3Par is now valued at $2.0 billion, nearly 3 times from where it had started out on the day of the initial bid. More details can be found here.
While HP and Dell can and will, justify their bidding based on a cogent rationale of some sort, its natural to look at the entire bidding war and ask – can 3Par really be worth that much?
What do you think about it? Was this a strategic move? A way to deplete the competition’s cash? 2 egos fighting? or just a bad call?
TresVista Financial Services Pvt. Ltd. is a Mumbai-based firm that provides research, analytics, M&A advisory, and other customized services. Its clientele includes investment banks, private equity firms, hedge funds, debt lenders, and other financial services institutions.