IPO Pricing for Boston Beer Company Inc. Case Summary We address the following key questions regarding Boston Beer Company (BBC) to explore the issues surrounding its Initial Public Offering. First of all, we determine the fair value of BBC to be $211 million based on a DCF valuation of projected future cash flows and explain our key assumptions and potential problems arising from those assumptions. Second, we find BBC’s fair value to be $314 million by relative valuation and discuss how
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I. Assumptions underlying the market valuation End of July 7, 2011 LinkedIn price closed at $94, more than double its IPO of $45. It all started on 19 May 2011, when most od media published the headline like ‘LinkedIn stock more than doubles in IPO’. On this very day Jeffrey Weiner, LinkedIn’s CEO, answer to the question of Bloomberg ‘Do you think you left some money on the table Jeff with a price of $45?’ Answer ‘We are in for the long-term’. What does this mean exactly? The market was still
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Investment banking is the field of banking that helps companies acquire funds. In addition to the acquisition of new funds, investment banking also offers advice for a wide range of transactions that companies may engage in. Through investment banking, an institution generates funds in two separate ways. They may draw on public funds through the capital market by selling stock in their company, and they may also seek out venture capital or private equity in exchange for a stake in their company
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BUSA 3134 Case Analysis Summer 2012 The focus of this analysis is the IPO of Facebook and subsequent decline in the stock price. Introduction – History of Facebook; what factors lead to the IPO. How the company expected the public/market to react to the IPO (stock price and trading, etc.) Body – What was the market reaction? What happened on the first day of trading and in the subsequent weeks (decline in market price, etc.) What items contributed to the loss of interest/loss of value
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LaToya Roberts-Hill FI516 – Advanced Managerial Finance IPO Paper Dollar General Corporation Dollar General Corporation was founded in 1939 by Cal Turner in Scottsville, Kentucky. The initial concept of Dollar General was that no item in the store would cost more than one dollar. Dollar General Stores are normally located in small shopping plazas or strip malls in local neighborhoods. In recent years, Dollar General has started constructing more stand-alone stores, mostly in areas that
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Asia X Berhad Initial Public Offerings (IPO) of Ordinary Shares Road Show was held on the 29th of June 2013. The purpose of this memo is to determine whether we, as large foreign institutional investors should buy or not to buy Air Asia X Berhad IPO shares with fundamental analysis and findings. Besides deciding whether to buy or not to buy, we will justify the reasons underlying our decision that we have come across that we are not buying Air Asia X Berhad IPO shares. Background: Air Asia X is
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Table 1 Amazon Estimated Free Cash Flows to the Firm | Year | 1996 | 1997 | 1998 | 1999 | 2000 | 2001 | 2002 | 2003 | 2004 | 2005 | 2006 | 2007-after | | 0 | 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 10 | 11 | Revenue Growth Rate | 2981.41% | 300.00% | 200.00% | 160.00% | 125.00% | 100.00% | 50.00% | 30.00% | 20.00% | 10.00% | 6.00% | 6.00% | Revenues | 15,746 | 62,984 | 188,952 | 491,275 | 1,105,369 | 2,210,738 | 3,316,108 | 4,310,940 | 5,173,128 | 5,690,441 | 6,031,867
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| JetBlue Airways | | Valuation of an IPO Case Study | | JetBlue Airways | | Valuation of an IPO Case Study | 2014 Ivan McClure, Imtiaz Saboor, Vanessa Lopes, Gilberta Pjetri 2014 Ivan McClure, Imtiaz Saboor, Vanessa Lopes, Gilberta Pjetri TABLE OF CONTENTS * History * Advantages & Disadvantages of an IPO * IPO Process * Weighted Average Cost of Capital (WACC) * Similar Company Analysis * Discounted Cash Flow Analysis * Final
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The case “JetBlue Airways IPO Valuation” outlines JetBlue’s innovative strategy and the associated strong financial performance over the initial two years, in order to determine the price of initial public offering of its stock on April 2002. To the whole industry of Airlines, the terrorist attacks of September 2001 caused a challenge, especially to large numbers of low-fare U.S. airlines. However, JetBlue remained profitable and grew aggressively. From 2002, the low-fare business model
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equity price of $37.71 and $13.67 respectively. Taking all five of these figures into consideration and averaging them out gives us a price of $27.81. Given the figures that we calculated and the current economic state of the market, we would recommend the IPO price to be set between $23 and $25.
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