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I need help answering the following questions for...

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I need help answering the following questions for tom.com case: Tom.Com Case Questions Suggested Assignment 1) Size up Tom.Com, Ltd. Assess Tom?s business model, revenue model, growth potential, risks and major shareholders. The case provides information on each of these areas (business model, revenue model, etc.). For this question you need to evaluate each area with respect to whether or not the assumptions/models provided in the case are valid or appropriate. What are the risks for the company and for the major shareholders in this IPO. 2) Consider the valuation of Internet stocks versus ?traditional? firms. What are the similarities? What are the differences? In this question, you are asked to consider the general differences or similarities between the valuation process for Internet stocks versus more traditional companies. Are Internet companies essentially different from most other companies or does this not really matter in the valuation process? 3) Apply the implied average annual revenue growth rate approach to Tom as suggested by Perkins, as well as any other valuation approaches you think are appropriate. Please clearly state any assumptions you are making. What is Tom?s worth compared to the suggested IPO price? This question is just asking you to perform a valuation on the Tom.Com company and to compare it to the suggested IPO pricing as provided in the case. You may use whatever valuation approaches you think are valid for this company (DCF and/or multiples). 4) What would you recommend to Andy Lau and EuroGlobal regarding the purchase of Tom shares? The last question is just asking you to provide a recommendation on the purchase of the IPO shares.

 

Paper#2519 | Written in 18-Jul-2015

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