ABC Tech, a fast-growing software company, is preparing for an Initial Public Offering (IPO). The company has shown rapid revenue growth in recent years but remains unprofitable due to significant reinvestment in research and development (R&D) and aggressive market expansion. The IPO is expected to raise R1 billion, which ABC Tech plans to use for further expansion, debt repayment, and technological advancements. An institutional investor, Global Equity Fund, is considering investing in the IPO but has concerns about valuation, future profitability, and market risks. Given the recent volatility in tech stocks and uncertainty in the economic environment, the fund's investment committee requires a thorough analysis before making a decision. The key concerns include whether ABC Techs current valuation is justified, potential risks associated with the investment, and alternative opportunities that may offer a better risk-return tradeoff. The investor seeks your expert opinion on whether to invest in ABC Techs IPO. QUESTION 1[30 MARKS]1.1 Analyze key financial metrics and valuation methods to determine whether ABC Tech is overvalued or undervalued.