Ramkumar’s Posts

Does Big Market Delusion Work?

Does Big Market Delusion Work? One of the difficulties we face when valuing young companies or companies with new #businessmodels is our delusion of the big markets that these firms claim to serve when they arrive at their #TAM (Total Addressable Market). As a result, investors/VCs justify high pricing for these companies by pointing to their TAM. We

Challenges in Valuing Businesses in Transition – Case of Volkswagen

Challenges in Valuing Businesses in Transition – Case of Volkswagen

Twitter – Musk Legal Battle

Twitter – Musk Legal Battle

Organic vs Inorganic Growth Strategy? Which one to choose and When?

Organic vs Inorganic Growth Strategy? Which one to choose and When?

Exclusivity in M&A

Exclusivity in M&A

Earn-out in M&A

Earn-out in M&A

Challenges with LIC Business Model

Challenges with LIC Business Model

Risk Capital During High Inflationary Periods

Risk Capital During High Inflationary Periods

Q1 Results for IT Services Firms

Q1 Results for IT Services Firms

Is Gold The Right Inflation Hedge

Is Gold The Right Inflation Hedge

Inflation, Interest Rates and Risk Premiums in Valuations

Inflation, Interest Rates and Risk Premiums in Valuations

When Should Firms Do Share Buyback?

When Should Firms Do Share Buyback?

Shareholder Value At Risk (SVAR) in M&A

Shareholder Value At Risk (SVAR) in M&A

Zomato Blinkit Acquisition

Zomato Blinkit Acquisition

Does Buying in Dips Investing Strategy Work

Does Buying in Dips Investing Strategy Work

Business Model VS Strategy

Business Model VS Strategy

When To Sell/Exit a position in Stock

When To Sell/Exit a position in Stock

FII Sell-Off in Indian Stock Markets

FII Sell-Off in Indian Stock Markets

Why do Many Start-Ups Shut Down?

Why do Many Start-Ups Shut Down?

My Prediction For US Stock Markets in 2022

My Prediction For US Stock Markets in 2022

Apple’s BNPL Strategy

Apple’s BNPL Strategy

Corporate Governance in Startups

Corporate Governance in Startups

Why Do Venture Capitalists Overpay

Why Do Venture Capitalists Overpay

Blitzscaling and Other Growth Strategies

Blitzscaling and Other Growth Strategies

DCF VS Relative Valuations

DCF VS Relative Valuations

Has Global Sanctions on Russia Worked?

Has Global Sanctions on Russia Worked?

Inflation and Impact on Stock Prices

Inflation and Impact on Stock Prices

Can We Value Gold?

Can We Value Gold?

𝐇𝐨𝐰 𝐝𝐨𝐞𝐬 𝐚 𝐩𝐨𝐢𝐬𝐨𝐧 𝐩𝐢𝐥𝐥 𝐰𝐨𝐫𝐤?

𝐇𝐨𝐰 𝐝𝐨𝐞𝐬 𝐚 𝐩𝐨𝐢𝐬𝐨𝐧 𝐩𝐢𝐥𝐥 𝐰𝐨𝐫𝐤?

How Relevant Are Acronyms Today

How Relevant Are Acronyms Today

Implied Equity Risk Premium Calculation in May 2022

Implied Equity Risk Premium Calculation in May 2022

LTI – Mindtree Merger

LTI – Mindtree Merger Another consolidation is happening in the Indian IT services sector with the merger of LTI – Larsen & Toubro Infotech and Mindtree. My initial insight from the announcement is that 𝐋𝐓𝐈 𝐰𝐢𝐥𝐥 𝐩𝐚𝐲 𝐌𝐢𝐧𝐝𝐭𝐫𝐞𝐞 𝐬𝐡𝐚𝐫𝐞𝐡𝐨𝐥𝐝𝐞𝐫𝐬 𝟎.𝟕𝟑 𝐋𝐓𝐈 𝐬𝐡𝐚𝐫𝐞𝐬 𝐟𝐨𝐫 𝐞𝐯𝐞𝐫𝐲 𝐬𝐡𝐚𝐫𝐞 𝐨𝐟 𝐌𝐢𝐧𝐝𝐭𝐫𝐞𝐞, effectively paying a 𝟓.𝟕𝟏% 𝐩𝐫𝐞𝐦𝐢𝐮𝐦 𝐨𝐫 𝐑𝐬.𝟑𝟏.𝟕𝟔 𝐛𝐢𝐥𝐥𝐢𝐨𝐧 more than Mindtree’s market

RBI Hikes Repo Rates

RBI Hikes Repo Rates

How High-Interest Rates Affect Entrepreneurs

How High-Interest Rates Affect Entrepreneurs

LIC IPO – How To Calculate Embedded Value

LIC IPO – How To Calculate Embedded Value

Shareholder Activism in 2022

Shareholder Activism in 2022

Why Netflix Share Prices Crashed

Why Netflix Share Prices Crashed

Hostile Takeovers – Twitter and Musk Saga

Hostile Takeovers – Twitter and Musk Saga

Indian IT Services – Q4 Earnings

Indian IT Services – Q4 Earnings

My Valuation Of Twitter

My Valuation Of Twitter

Ruchi Soya Merger With Patanjali Foods

Ruchi Soya Merger With Patanjali Foods

Survival Is The Mantra For Indian Firms

Survival Is The Mantra For Indian Firms

HDFC Merger With HDFC Bank

HDFC Merger With HDFC Bank

Structural Issues With SPAC

Structural Issues With SPAC

Buzz Words Used In M&A

Buzz Words Used In M&A

Making Money On Disruptive Business Models

Making Money On Disruptive Business Models

Valuing A Business By Customers

Valuing A Business By Customers

The Efficient Portfolio Strategy

The Efficient Portfolio Strategy

Accenture Stellar Performance

Accenture Stellar Performance

Right Investment Strategy Post Russia Ukraine War

Right Investment Strategy Post Russia Ukraine War

A Review Of Zomato Pricing

A Review Of Zomato Pricing

Growth Investing VS Value Investing

Growth Investing VS Value Investing

EPS Accretion VS Value Creation In M&A

EPS Accretion VS Value Creation In M&A

How To Evaluate A Share Buyback

How To Evaluate A Share Buyback

What Is Double Irish Dutch Sandwich

What Is Double Irish Dutch Sandwich

How Cash Reserves Link To Startup Valuations

How Cash Reserves Link To Startup Valuations

Impact Of Rising Crude Oil Prices

Impact Of Rising Crude Oil Prices

Evolution Of Metaverse

Evolution Of Metaverse

Valuing Country Risk Premium

Valuing Country Risk Premium

Decline In Corporate Governance

Decline In Corporate Governance

Exit Multiples In VC Pricing

Exit Multiples In VC Pricing

Valuation Of NIFTY 50

Valuation Of NIFTY 50

Beta In DCF Valuation

Beta In DCF Valuation

How DCF Valuation Incorporates Economic Principles

How DCF Valuation Incorporates Economic Principles

Valuation Of Google

Valuation Of Google

Outsourcing And Its Effect on Value Creation

Outsourcing And Its Effect on Value Creation

Do EPS Accretive Deals Add Value in M&A

Do EPS Accretive Deals Add Value in M&A

Payoff In DCF Valuation Model

Payoff In DCF Valuation Model

Valuation Of Meta

Valuation Of Facebook

My Review Of The Union Of India Budget

My Review Of The Union Of India Budget

Valuing A Brand Name

Valuing A Brand Name

Link Between Inflation And Risk-Free Rate

Link Between Inflation And Risk-Free Rate

How To Treat Depreciation In Valuation

How To Treat Depreciation In Valuation

Valuation Of Sensex

Valuation Of Sensex

Does Netflix Have Networking Effects

Does Netflix Have Networking Effects

Risk In Corporate Finance

Risk In Corporate Finance

What Is January Effect

What Is January Effect

Irrational Exuberance And Behavioural Finance

Irrational Exuberance And Behavioural Finance

Microsoft Acquisition Of Activision Blizzard

Microsoft Acquisition Of Activision Blizzard

Screening Targets in M&A

Screening Targets in M&A

Momentum Driving Stock Prices

Momentum Driving Stock Prices

Era Of Monopolistic Companies

Era Of Monopolistic Companies

My Prediction For Stock Markets In 2022

My Prediction For Stock Markets In 2022

Innovator’s Dilemma

Innovator’s Dilemma

Differential Voting Rights

Differential Voting Rights

How to command superior valuations for your company?

How to command superior valuations for your company?

Barriers To Entry

Barriers To Entry

Issues With Accounting Returns

Issues With Accounting Returns

Incorporating Share Dilutions In Valuations

Incorporating Share Dilutions In Valuations One challenge investors often confront when valuing young promising startups is capturing the effect of share dilution. For instance, for startups to scale, they need to reinvest. Thus, these startups have negative cash flows during the initial years. If the startup needs to sustain itself, it needs capital, and investors

Growth Rates In Accounting Measures

Growth Rates In Accounting Measures

When Equity Has Negative Value

When Equity Has Negative Value

Different Ways Of Valuing A Business

Different Ways Of Valuing A Business

Role Of Cash In Startups

Role Of Cash In Startups

Statistics And Finance

Statistics And Finance

Pre-Money And Post-Money Valuation

Pre-Money And Post-Money Valuation

GE Breakup

GE Breakup

Are Markets In Bubble

Are Markets In Bubble

Biases in Valuations

Biases in Valuations

Valuing Bitcoin

Valuing Bitcoin

SaaS Business Models

SaaS Business Models

Five Biggest Mistakes By Buyers In M&A

Five Biggest Mistakes By Buyers In M&A Five biggest mistakes acquirers make in merger and acquisitions transactions: 1)Instead of arriving at the cost of capital for the target company, they use the acquirer’s cost of capital (#WACC). 2)The acquirers pay a fixed 20% control premium over the target’s intrinsic value without analysing whether the premium adds

Forecasting Growth Rates In Valuations

Forecasting Growth Rates In Valuations

Control Premium In M&A

Control Premium In M&A

Assessing Survival Risk In Startups

Assessing Survival Risk In Startups

Cost Of Capital In Mergers And Acquisitions

Cost Of Capital In M&A

Value Of Growth

Value Of Growth

Cash Balances In Valuations

Cash Balances In Valuations

Zomato Valuations Review

Zomato Valuations Review

Goodwill In M&A

Goodwill In M&A

Synergies Realisation In M&A

Synergies Realisation In M&A

Financial Disclosures

Financial Disclosures

Why Zomato IPO Could List At Premium

Why Zomato IPO Could List At Premium

Speed Of Integration In M&A

Speed Of Integration In M&A

Facing Uncertainty In M&A Strategy

Facing Uncertainty In M&A Strategy

Choosing The Right Integration Strategy In M&A

Choosing The Right Integration Strategy In M&A

Deal Structuring In M&A

Deal Structuring In M&A

M&A Strategies

M&A Strategies

Valuation Of Amazon Prime

Valuation Of Amazon Prime

Revisiting Meta Platforms Valuation

Revisiting Meta Platforms Valuation I value social media companies regularly to see if the network effects that we thought would work for these firms continue to operate. Meta and Google are the two leaders in social media networks that have disrupted the traditional advertising model. They were instrumental in firms reallocating their advertising spending from