Japan's NTT plans to take NTT Data private for $16.4 billion
This leads to a value of $104 million in owner earnings in year 10. Let’s assume that the market pays an average multiple of 15× on owner earnings for this type of business and that no valuation rerating or derating of the business occurs in the interim period. This gives us a market value of $1.56 billion in year 10. Compared with the current mark
... See moreGautam Baid • The Joys of Compounding: The Passionate Pursuit of Lifelong Learning, Revised and Updated (Heilbrunn Center for Graham & Dodd Investing Series)
Favored companies such as Google, Facebook, Netflix, Apple, and Amazon show a valuation of between eight and forty times their revenues. By contrast, companies such as AT&T, Verizon, T-Mobile, and the competitive local exchange carriers supplying the core of the network show valuations between twenty and eighty times lower—between 0.5 and 1.5 t
... See moreGeorge Gilder • Life After Google
It didn’t hurt that, in 2016, the Indian telecom provider Jio announced a plan that offered dirt-cheap data, forcing its competitors to reduce the price of a gigabyte of data from an average of
Aditya Agashe • Swipe to Unlock: The Primer on Technology and Business Strategy (Fast Forward Your Product Career: The Two Books Required to Land Any PM Job)
Reliance Industries Ltd (“Reliance” or “RIL”) is like an India-focused Exxon, Dow Chemical, Walmart, AT&T, and Comcast all rolled into one. If it fulfills its Jio vision, it will add Shopify, DoorDash, Zoom, WeChat, Square, AWS, and more to that roll. Its $200 billion market cap is the largest in India
Packy McCormick • Reliance: Gateway of India
When we buy a stock, we always think in terms of buying the whole enterprise because it enables us to think as businessmen rather than stock speculators. So let’s just take a company that has marvelous prospects, that is paying you nothing now where you buy it at a valuation of $500 billion…. To deliver, let’s assume that there’s only going to be a
... See moreGautam Baid • The Joys of Compounding: The Passionate Pursuit of Lifelong Learning, Revised and Updated (Heilbrunn Center for Graham & Dodd Investing Series)
Intel + MobileyeThis is the context for Intel’s acquisition. First off, yes, it is ridiculously expensive. The purchase price of $14.71 billion (once you back out Mobileye’s cash-on-hand) equates to an EBITDA multiple of 118; it helps that Intel is paying with overseas cash, which the company hasn’t paid taxes on. And second, I’ve long argued that ... See more