BUSINESS VALUATION
Succession planning: When a family breaks up, how does the business survive?
If the next generation wants to preserve the family business bot not necessarily together, here’s how they can execute the split without impacting the wealth.
Startups would rather stay young forever than grow up into dull, profitable companies
Startups often embrace a culture that favors ongoing growth while avoiding traditional business maturity. They value the perception of potential over actual profits, which can lead to greater valuations. Many startups prefer being perceived as innovative rather than risk falling into the category of established companies. This phenomenon creates a cycle where companies resist scaling up in favor of remaining 'young'.
Valuation of businesses run by under-35s rises 23% to Rs 48 lakh crore: Hurun report
The total valuation of businesses run by individuals under 35 in India rose significantly this year. The number of young business leaders increased from 155 to 180, showing notable growth. A total of 37 companies on the list are valued at over $1 billion, employing more than 5.88 lakh people. Meanwhile, the emergence of founders in the artificial intelligence sector has quadrupled.
ITC’s tobacco business is going cheap but Kotak Institutional Equities thinks market has it wrong
Kotak Securities estimates ITC’s tobacco business is valued at just 11X forward earnings, suggesting potential undervaluation. The brokerage sees stronger growth in non-tobacco businesses and believes splitting ITC’s tobacco and non-tobacco operations could unlock significant shareholder value.
India’s IPO party is in full swing. Just don’t mistake debut-day gains for a winning bet
August saw twenty companies raise over twenty-one thousand crore rupees. Listing-day returns have significantly increased from a discount to a premium. Investors should not treat initial public offerings as lottery tickets. Thorough due diligence is essential to identify strong businesses and avoid duds. Analyzing financials, valuation, and offer details helps separate quality investments.
The trader’s dilemma: When to react and when to ride out market volatility
Market volatility can test even the most seasoned traders. Understanding the difference between price swings and genuine risk, while relying on valuation frameworks, can help investors respond with analysis rather than emotion.
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ET Exclusive: Pirojsha Godrej set to take charge at Godrej Industries with an ambitious growth plan
Pirojsha Godrej is set to take charge of Godrej Industries Group, succeeding Nadir Godrej, with a mandate to build sector-leading businesses and more than double the group’s valuations in five years. He plans sharper capital allocation, greater investment in businesses with scale potential and closer scrutiny of underperforming businesses.
Everyone's an idiot or a maniac (except you)
People often judge others' business speeds based on their own perspective. Companies experiencing rapid growth are seen as reckless or fraudulent. Firms with modest profits are criticized for lacking ambition and scale. Economists also face criticism for their differing growth theories. Ultimately, progress is defined by political consensus rather than objective measures.
RCB top scorer with $312 mn brand value as IPL grows bigger
Indian Premier League valuations have increased significantly year-on-year. Royal Challengers Bengaluru became the first franchise to surpass $300 million brand value. The league's overall business value has seen double-digit growth for two consecutive years. Landmark franchise acquisitions reflect growing investor confidence in the league's potential. IPL's per-match valuation ranks second globally, behind the NFL.
RCB wins valuation crown! Royal Challengers Bengaluru 1st $300 mn cricket team as IPL business value crosses $20 bn
Royal Challengers Bengaluru has surpassed a $300 million brand value milestone. The Indian Premier League's overall business valuation climbed to $20.6 billion this year. This growth underscores the tournament's increasing commercial appeal and global investor confidence. Recent franchise transactions have reset valuation benchmarks for the league. Global investors now view franchises as scalable sports and entertainment businesses.
One learning platform. Endless possibilities: Exploring every ET Masterclass designed for tomorrow's leaders
From AI and leadership to investing, entrepreneurship and financial literacy, ET Masterclass brings together expert-led programmes for every stage of learning. Explore its diverse portfolio and discover how it's helping learners build future-ready skills for an evolving world.
Astral's demerger plan triggers sharp selloff, brokerages trim target prices
Astral's stock dipped 11% after announcing a demerger of its chemicals business. Investors are concerned about the valuation and growth prospects of the standalone chemical entity, which currently lags the profitable plumbing segment. While analysts maintain 'buy' ratings, some have lowered target prices. The company anticipates significant revenue growth for the chemicals division in the coming years.
How a simple checklist can help investors avoid costly stock market mistakes
Michael Shearn argues that long-term investing success comes less from prediction and more from discipline, research and process. By using structured checklists, applying strict investment filters and controlling emotions, investors can reduce costly mistakes and make more rational decisions while focusing on business quality and long-term value creation.
Why is Unilever looking to sell its food business?
In a strategic pivot, Unilever is exploring the sale of its food division to McCormick & Company, a potential match that could fuse popular brands such as Hellmann's and Knorr with McCormick's own beloved Cholula hot sauce. This move reflects Unilever's commitment to refining its business model in response to shifting consumer tastes and competitive pressures.
US Stocks: Unilever shares fall on investor concerns about food business spin-off
Unilever shares dropped as investors worried about a potential food business split. This comes soon after the company separated its ice cream brands. Analysts suggest the new CEO needs more time before further restructuring. The food business, including Knorr and Marmite, reported profits last year. Investors have long pushed for a sale of the slow-growing food division.
ET Women's Forum: Valuation doesn't know gender
At The Economic Times Women's Forum, women founders highlighted that performance and vision, not gender, drive startup success. Sakshi Chopra of Peak XV emphasized that investors prioritize metrics and clarity. Founders like Ahana Gautam (Open Secret) and Anju Srivastava (Wingreens Farms) stressed consumer understanding and building trust.
Morgan Stanley upgrades Grasim to 'Overweight', raises target price to Rs 3,500
Morgan Stanley has upgraded Grasim Industries to 'Overweight,' citing the paints business's scaling and improved visibility. The brokerage anticipates a 29% upside, raising the price target to ₹3,500. Grasim is expected to become a formidable number three player in the paints sector by FY28, with Ultratech Cement remaining a key value driver.
Flippin' karts for higher valuation
Flipkart is reportedly moving its holding company back to India from Singapore, aiming to capitalize on higher valuations in the domestic market ahead of its public listing. This reverse flip trend, driven by strong investor appetite and market sentiment, is becoming increasingly common for Indian startups seeking to unlock greater value.
Shifting headquarters from Kolkata to Bengaluru increased company valuation by 50%, claims entrepreneur. Netizens say 'pincode matters'
A business strategist successfully convinced a client to move their headquarters from Kolkata to Bengaluru, resulting in a 50% increase in the company's valuation. The relocation highlighted the importance of business geography, sparking debate within the professional community about the influences of startup ecosystems on market perception and valuation.
Vedanta creditors meet on Tuesday to vote on India demerger plan
Vedanta Ltd.'s creditors are set to vote on a plan to split the company into at least five businesses in a move aimed at simplifying its structure and managing debt. The demerger will see the creation of distinct units for aluminum, oil & gas, power, steel, and semiconductors, potentially attracting new investors.
Biocon denies plans to sell $1.5 billion generic API business
Biocon API business: Biocon has refuted claims of considering the sale of its generic active pharmaceutical ingredient (API) business, valued at $1.5 billion, to alleviate its debt burden. A company spokesperson clarified they were not assessing divestment options or seeking advice from bankers, countering an ET report based on insights from familiar sources.
Not a concern anymore! Jefferies raises ITC target price on hotels business valuation shift
ITC is considering a new structure for its hospitality business due to concerns over high capital expenditure and weak returns. The hotel business contributes less than 5% of ITC's revenues but accounted for over 20% of its capital expenditure in the past. However, the segment has recently shown signs of improvement, with the hotels business recording strong revenue growth and returning to profitability. ITC has been focusing on an asset-light strategy, with over half of its room inventory now through management contracts. Jefferies has raised ITC's target price to Rs 530 due to improving profitability in the hotel business.
OfBusiness valuation nearly doubles to $3 billion after Tiger Global-led funding
OfBusiness cofounder and chief executive Asish Mohapatra told ET that both SoftBank and Falcon Edge-managed Alpha Wave have participated in the fundraising.
Business Valuation: How much is your Business worth?
Corporate valuations form the basis of corporate finance activity including capital raising, M&A and also to meet regulatory requirements.
Aramco seeks 20% cut in Reliance's O2C business valuation; deal hits roadblock
Aramco felt the business would need substantial investment to convert oil to valuable chemicals and not produce substantial quantities of petrol, diesel, and ATF as Jamnagar refineries currently do.
Your company's true worth: How to value your business
Learn about the proven and widely accepted business valuation methods that help provide a good starting point for estimating value.
Buy Mahindra & Mahindra Ltd., target Rs 1713.0 : Motilal Oswal Securities
With strong earnings cycle ahead in core business and potential reduction in losses of non-core business, valuations at ∼16.9x FY18E S/A EPS, ∼14.5x FY18E consolidated EPS and ∼6.3 % FY18 FCF yield
Unichem plans sale of domestic formulations business; valuation seen at $1-1.2 billion
Investment bank Jefferies has been hired to seek potential suitors. The valuation could be $1-1.2 billion, said one of those cited above.
IPL troubles hit India Cements’ core business valuation
In terms of contribution to the total net profits of the top 10 cement companies, that of India Cements has fallen to 2% in FY13 from 7% in FY09.
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