Paytm valuation at $ 20 billion with no new business potential: Damodaran

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The rating of the digital payment and financial services company Paytm is around $ 20 billion when the potential of his new business is ruled out, according to a US valuation expert Aswath Damodaran.

Damodaran, a finance professor at New York University’s Stern School of Business, appreciates them Unlisted shares of the IPO linked company at Rs 2,950 each.

On a blog on Oct. 4, Damodaran said, on the one hand, that there will be some who see nearly $ 20 billion (Rs 1.5 lakh crore) worth of a company with low revenues, a history of operating losses, and distracted management as insane .

“On the flip side, there will be some who feel that I am not recognizing the company for all the new business it can do by leveraging its huge user platform and thus undervaluing the company.

“For both sides, my defense is that this is my story and assessment and will fuel my investments,” said Damodaran.

Paytm has learned to look at a valuation of Rs 1.47 lakh crore to Rs 1.78 lakh crore as it plans to go public this month with a public offering of Rs 16,600 crore.

“Needless to say, if I were to invest in Paytm, it wouldn’t just have to be at the right price, i.e. investments that require active engagement and monitoring of the company’s actions and performance,” said Damodaran.

Paytm declined to comment on a request in this regard.


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