Valuation and Analysis of E-Business: With Special Reference to Amazon and eBay

Abstract

For anyone involved in E-business and connected to the field of corporate finance, understanding the mechanism of an online business and its valuation is an indispensable requisite. This is not only because of the importance of valuation in acquisitions and mergers but also because the process of valuing a business and its units helps identify sources of economic value creation and destruction within the company. Similarly, this value creation is affected by many a factors which are non-financial in nature and do not get incorporated while valuation. The firm, further goes through many a common mistake too and these are the result of relying upon the traditional practices and the methods. Hence, need is to find out such factors and problematic contents that distorts the valuation and misinterpretation of the business and its financial position. The vigilance and expertise along with experience are the characteristics required to be with the financial analyst so as to avoid such blunders in financial analysis.

Keywords: E-Commerce, Valuation, Discounted Cash Flow (DCF) Analysis, Multiples Method, Market Valuation, Comparable Transactions Method

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