In case you have not checked out Indian Knowledge @ Wharton, this week is a good time to start. There is a story that gives a 360 view of the Hutch valuation in the context of the larger Indian mobile market. As is typical of K@W it tempers what industry experts have to say with views and analysis from academia, including faculty from ISB:-)
So, any further thoughts, predictions on how this is going to play out?
3 comments:
Very good post...Economic times had carried on article on this but the analysis was on different lines.I am just trying to provide a jist of it here. The author coins a new term called 'Competitive arousal'. Most of the corporates in India, and in other parts of the world, look at competitors as rivals. The game then transforms into one involving hubris rather than fair valuation. The other side of the coin is the hype created by the media over the bidding battles waged by corporates.They make a failed bid sound like a loss of face. and thirdly, there is time pressure , both from the shareholders and target companies, to conclude the deal ASAP. time pressure when combined with hype and rivalry can be a deadly combination.
Can you explain the intuition behind the formula to arrive at the customer value ?
M* R/(1+I-R)
Well said.
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