Dear readers,
Here in the presentation format I am sharing a simple way to evaluate OLA cabs's car aggregator business in India using the DCF (Discounted Cash Flow) approach.
A two phase growth model has been considered in which Ola is expected to grow at an decelerating rate for first 10 years and then expected to reach a steady state phase.
Although equity valuation is an art, a market share based approach with the expected futuristic market condition (in terms of monopoly to perfect competition scenarios) simplify the problem. Although I am more into quantitative finance, I find it a good problem to ponder upon! :)
