Rs in Cr.

Revenues
Sales multiple(Market Cap/Sales)
Exit Valuation
(Less)Net Debt
Proceeds to equity holders

Actual
2008
2.5

2009
2010
4.64 4.310345
11.6
50

Using Market Cap/Sales multiple

Discount Rate
Discounted equity value(at the end of FY 2014)
Post Money Equity Value
Less(Equity investment)
Pre-Money equity Value

30% (Considering a advanced stage of VC

18354.84
18354.84
-5000 (Considering required euity investm
13354.84

Using P/E multiple

Expected earnings of Flipkart in 2024
P/E multiple
Market Capitalisation of Flipkart in 2024
Discount Rate
Discounted equity value(at the end of FY 2014)
Post Money Equity Value
Less(Equity investment)
Pre-Money equity Value

22326.8 (Average profit margin of comparabl

18 (Average P/E of comparable listed co
401882.5
30% (Considering a advanced stage of VC
29151.81
29151.81
-5000 (Considering required euity investm
24151.81

Expected
2011
2012
2013
2014
1.7 2.405882 5.770171 2.411864
85
204.5
1180
2846

2015

2016

2017

2018

8538

21345

42690

74707.5

g a advanced stage of VC funding where hurdle rate is lower compared to initial stages of funding)

g required euity investment for shift to marketplace model to be 5000 crore)

ofit margin of comparable listed companies was found to be 10%)

E of comparable listed companies)

g a advanced stage of VC funding where hurdle rate is lower compared to initial stages of funding)

g required euity investment for shift to marketplace model to be 5000 crore)

Expected
2019
2020

2021

2022

2023

112061.3 140076.6 168091.9 193305.7 212636.2

of funding)

of funding)

2024

223268 (Assuming that, if Flipkart migrates t

1.7 (Average market cap/Sales for compa
379555.7
126518.6 (considering D/E ratio of 1:2 in 2024)
253037.1

hat, if Flipkart migrates to marketplace model growth rate of revenues would increase by 200% in the 1st year a
arket cap/Sales for companies following marketplace model in e-commerce was found to be 1.7)
D/E ratio of 1:2 in 2024)

by 200% in the 1st year as the pool of merchandise is expected to increase by 10 times ,then in each of the nex

,then in each of the next 2 years the growth rate would decrease from 200% by 50 percantage points,in the se

rcantage points,in the second set of 3 years it would decrease by 25 percentage points each year,in the last set

each year,in the last set of 4 years it would decrease by 5 percentage points each year and will converge with e

r and will converge with economy growth rate in 2025 which is assumed to be 5%)