Assume you are an investment banker, and your client (a startup company specializing in building AI systems
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Assume you are an investment banker, and your client (a startup company specializing in building AI systems to identify illicit activities associated with Bitcoin) decided to take his company public.
Based on its financial projections, the company is expected to make a net profit of $1M in Y1, growing linearly to $5M in Y5, and keeping steady with a growth rate of 10% in perpetuity after that
The risk free rate is 2%, the β for the company is 2.5, and the expected market return is 8%.
How much would you suggest as a valuation for the company?
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Auditing A Practical Approach with Data Analytics
ISBN: 978-1119401742
1st edition
Authors: Raymond N. Johnson, Laura Davis Wiley, Robyn Moroney, Fiona Campbell, Jane Hamilton
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