Episode Details

In the last decade, smart phone access and usage have exploded in India and no company has been better positioned to take advantage than Paytm, founded in 2010 with modest ambitions. The company has expanded its products and services to take advantage of almost every aspect of mobile payments, giving it a commanding market share of that business in India. While user count and transaction value has grown, the company has had trouble monetizing that growth in revenues or operating income, but with substantial cash infusions from Alibaba and Softbank, the company is positioned to go public. In this session, I attempt to value the company, building on the promise of continued growth in the mobile market, but also trusting management to convert this growth into revenues and profits over time, resulting in a value for equity of close to $20 billion (1500 billion rupees).
Slides: http://www.stern.nyu.edu/~adamodar/pdfiles/blog/Paytm2021.pdf
Blog Post: https://aswathdamodaran.blogspot.com/2021/10/the-indian-smartphone-revolution-paytms.html
Valuation Spreadsheet: https://www.stern.nyu.edu/~adamodar/pc/blog/Paytm2021.xlsx

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