Valuation of Just Dial: An E-Commerce Company

Abstract

The objective of this paper is to value an e-commerce firm namely Just Dail and to identified discrepancy between market value and fair value which is arrived by using DCF and Multiples approach. Another objective is to analysis the past financial of the company and to understand the financial health of the company through projected financial statement. The paper concludes that the valuation of an e-Commerce company Just Dial is overvalued. The analysis of projected financial statement shows that it is at least a profitable company. The company enjoys a positive cash flows. The weighted average value of price per share is very near to the price suggested by the exit multiple method. Although there are huge discrepancies that exist among the multiple valuation due to different perspectives and market conditions across the countries. Indian dynamics shows that the current market price is grossly undervalued and a potential upside of about 150% exist over the long-term. Valuation multiples suggested by emerging Asian countries also suggest a similar trend, supporting a potential upside of over 50% over the long term perspective.