This Case is about Finance, International
Publication Date: 08/10/2000
This study is about a portfolio manager at EuroGlobal Funds who was assigned to supply his professional view on appropriateness of different investors and the worth of this investment. He was not unaware of the problems in valuing Internet companies and the argument over the selection of valuation approaches. Among these, one strategy was to examine the tacit hyper-growth rate that Internet companies had to reach in the next five years in order to warrant their present valuations. He determined to use this strategy to Tom.com. Students would get the possibility to have a discourse on development of Internet and the various valuation techniques and ecommerce businesses, particularly issues like predicted increase and business models.