Groupon Valuation

Open Source Model

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publically available information. It is available as an open-source model for any
user. Kindly note that this model is meant for information purpose only.
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model for deal company Groupon. The model builds the financial statements
from scratch to find the equity value and also uses ratio analysis for better
understanding.

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Pristine

ation

aluation model of Groupon based on

available as an open-source model for any
meant for information purpose only.

o create the full-blown equity valuation

he model builds the financial statements
and also uses ratio analysis for better

es you get to create professional models

e public domain.

adhseets please visit our website.

Assumptions
(Unless otherwise specified, all financials are in US $ Thousand)

FY 08A

Income Tax Rate

FY 09A
34%

Balance Sheet Assumptions

Accounts Receivables No. of Days

Scroll Bar

Prepaid Expenses as % of Revenue

Scroll Bar

4%

Accrued Merchant Payable as % of Revenue

Scroll Bar

14%

Account Payable No. of Days

Scroll Bar

Accrued Expenses as % of Revenue

Scroll Bar

16%

Interest Rates
Interest rate on Cash Balance
Interest rate on Overdraft

FY 10A

FY 11E

FY 12E

FY 13E

FY 14E

FY 15E

FY 16E

34%

34%

34%

34%

34%

34%

34%

22

1700%
17

1600%
16

1600%
16

1500%
15

1500%
15

14

2%

400%
4%

400%
4%

300%
3%

300%
3%

300%
3%

1%

23%

1600%
16%

1400%
14%

1200%
12%

1000%
10%

800%
8%

8%

29

1%
20

18

16

16

14

12

14%

1300%
13%

1200%
12%

1100%
11%

900%
9%

800%
8%

8%

4%

4%

4%

4%

4%

4%

4%

6%

6%

6%

6%

6%

6%

6%

14

Balance Sheet
(Unless otherwise specified, all financials are in US $ Thousand)

FY 08A

FY 09A

Assets
Fixed Assets
Gross Block
Less: Accumulated Depreciation
Net Block

348
74
274

Intangible Assets
Gross Block
Less: Accumulated Amortization
Net Block

270
31
239

Goodwill
Total Fixed Assets
Current Assets & Loans and Advances
Cash and Cash Equivalents
Accounts receivable
Prepaid Expenses and Other Current Assets
Deferred Income Taxes
Other Assets
Total Current Assets

513

12,313
601
1,293
242
14,449

Total Assets

14,962

Liabilities
Current Liabilities
Accounts Payable
Accrued Merchant Payable
Accrued Expenses
Dues to Related Parties
Deferred Tax Liabilities
Other Liabilities
Total Current Liabilities

182
4,324
4,836
877
10,219

Long Term Liabilities

Total Liabilities

10,219

Net Worth
Redeemable Convertible Preferred Stock
Series B
Series D
Series E
Total RCPS

20
4,727
29,965
34,712

Redeemable Non Controlling Interest

Stockholders Equity

Convertible Preferred Stock

Voting Common Stock
Treasury Stock
Additional Paid-In Capital
Stockholder Receivable
Accumulated Deficit
Accumulated Other Comprehensive Income
Total Stockholders Equity

3
(144)
(29,828)
(29,969)

Noncontrolling Interests
Total Net Worth
Total Net Worth & Liabilities
Check

4,743
14,962
TRUE

FY 10A

FY 11E

FY 12E

FY 13E

FY 14E

FY 15E

18,569
2,079
16,490

24,943
4,984
19,959

30,526
8,226
22,300

35,982
11,739
24,243

41,304
15,464
25,840

45,419
19,241
26,178

52,145
11,370
40,775

52,145
11,370
40,775

52,145
11,370
40,775

52,145
11,370
40,775

52,145
11,370
40,775

52,145
11,370
40,775

132,038

132,038

132,038

132,038

132,038

132,038

189,303

192,772

195,113

197,056

198,653

198,991

118,833
42,407
12,615
14,544
3,868
192,267

1,062,256
165,004
141,709
14,544
3,868
1,387,380

2,080,136
358,158
326,820
14,544
3,868
2,783,526

3,180,144
611,249
418,324
14,544
3,868
4,228,129

3,936,284
832,224
607,523
14,544
3,868
5,394,443

4,490,362
1,086,665
793,266
14,544
3,868
6,388,704

381,570

1,580,152

2,978,639

4,425,185

5,593,095

6,587,696

57,543
162,409
98,323
13,321
17,814
21,613
371,023

194,122
566,836
460,554
13,321
17,814
21,613
1,274,260

402,928
1,143,869
980,459
13,321
17,814
21,613
2,580,004

611,249
1,673,295
1,533,853
13,321
17,814
21,613
3,871,145

887,705
2,025,078
1,822,570
13,321
17,814
21,613
4,788,101

1,014,221
2,115,375
2,115,375
13,321
17,814
21,613
5,297,719

1,017

1,017

1,017

1,017

1,017

1,017

372,040

1,275,277

2,581,021

3,872,162

4,789,118

5,298,736

2,983

2,983

2,983

2,983

2,983

2,983

3
4
(503,173)
921,122
(286)
(419,468)
9,875
8,077

3
4
921,122
(619,236)
301,893

3
4
921,122
(526,494)
394,635

3
4
921,122
(371,089)
550,040

3
4
921,122
(120,135)
800,994

3
4
921,122
364,848
1,285,977

(1,530)

9,530

304,876

397,618

553,023

803,977

1,288,960

381,570

1,580,152

2,978,639

4,425,185

5,593,095

6,587,696

TRUE

TRUE

TRUE

TRUE

TRUE

TRUE

Income Statement
(Unless otherwise specified, all financials are in US $ Thousand)
Revenue
Total Revenue
Expenses
Cost Of Revenue
Sales & Marketing
General and Administrative
Acquisition-related
Depreciation & Amortization
Total Expenses
Other Income ( Expense)
Profit Before Tax
Provision for Income Tax
Profit After Tax
Loss Attributable to Non Controlling Interest
Balance Transfer to Balance Sheet

FY 08A

94

89
163
1,474
1,726
90
(1,542)
(1,542)
(1,542)

FY 09A

FY 10A

FY 11E

FY 12E

FY 13E

FY 14E

30,471

713,365

3,542,724

8,170,491

13,944,121

20,250,778

19,542
4,548
7,458
105
31,653

433,411
263,202
233,913
203,183
13,375
1,147,084

1,968,626
885,681
885,681
14,275
3,754,263

4,085,245
2,042,623
1,879,213
14,612
8,021,693

7,335,327
3,416,310
2,928,265
14,882
13,694,785

10,922,703
4,860,187
4,050,156
15,095
19,848,140

(16)

284

(1,198)

(433,435)

(211,539)

148,798

249,337

402,637

248

(6,674)

50,591

84,774

136,897

(1,446)

(426,761)

(211,539)

98,207

164,562

265,741

23,746

11,771

(5,464)

(9,157)

(14,786)

(1,446)

(403,015)

(199,768)

92,742

155,406

250,954

FY 15E

26,442,187

14,014,359
6,346,125
5,288,437
15,147
25,664,069
778,118
264,560
513,558
(28,576)
484,982

Cashflow Statement
(Unless otherwise specified, all financials are in US $ Thousand)

FY 08A

FY 09A

Cash Flow from Operations

PAT
Add: Depreciation
Add: Amortization
Less: Increase in Accounts Receivables
Less: Increase in Prepaid and Other Current Assets
Less: Increase in Deferred Income Taxes
Less: Increase in Other Assets
Add: Increase in Accounts Payable
Add: Increase in Accrued Merchant Payable
Add: Increase in Accrued Expenses
Add: Increase in Due to related parties
Add: Increase in Deferred Tax Liabilities
Add: Increase in Other Liabilities
Net Cashflow from Operations
Cashflow from Investment Activities
Less: Increase in Gross Block(Fixed Assets)
Less: Increase in Goodwill
Less: Increase in Gross Block(Intangible Assets)
Net Cashflow from Investment Activities

Cashflow from Financing Activities

Less: Increase in Non Controlling Interest
Add: Increse in Long Term Liabilities
Add: Increase in RCPS Series B
Add: Increase in RCPS Series D
Add: Increase in RCPS Series E
Add: Increase in Redeemable Non Controlling Interest
Add: Increase in Convertible Preferred Stock Series
Add: Increase in Voting Common Stock
Add: Increase in Treasury stock
Add: Increase in Additional Paid in Capital
Add: Increase in Stockholder Receivable
Add: Increase in Accumulated Other Comprehensive Income
Net Cashflow from Financing Activities
Net Change in Cash

Opening Cash Balance

Net Cashflow
Closing Cash Balance
Cash Balance in Balance Sheet
Check

12,313

FY 10A

FY 11E

FY 12E

FY 13E

FY 14E

FY 15E

(389,640)
2,005
11,339
(41,806)
(11,322)
(14,544)
(3,626)
57,361
158,085
93,487
13,321
17,814
20,736
(86,790)

(199,768)
2,905
(122,597)
(129,094)
136,579
404,427
362,231
454,683

92,742
3,242
(193,155)
(185,111)
208,806
577,033
519,905
1,023,463

155,406
3,512
(253,091)
(91,504)
208,321
529,426
553,394
1,105,464

250,954
3,725
(220,975)
(189,200)
276,456
351,783
288,717
761,461

484,982
3,777
(254,441)
(185,742)
126,516
90,297
292,805
558,194

(18,221)
(132,038)
(51,875)
(202,134)

(6,374)
(6,374)

(5,582)
(5,582)

(5,456)
(5,456)

(5,322)
(5,322)

(4,116)
(4,116)

(1,530)
1,017
(20)
(4,727)
(29,965)
2,983
3
1
(503,173)
921,122
(142)
9,875
395,444

1,530
503,173
286
(9,875)
495,114

106,520

943,423

1,017,880

1,100,008

756,139

554,078

12,313
106,520
118,833

118,833
943,423
1,062,256

1,062,256
1,017,880
2,080,136

2,080,136
1,100,008
3,180,144

3,180,144
756,139
3,936,284

3,936,284
554,078
4,490,362

118,833

1,062,256

2,080,136

3,180,144

3,936,284

4,490,362

TRUE

TRUE

TRUE

TRUE

TRUE

TRUE

Stockholders
(Unless otherwise specified, all financials are in US $ Thousand)
No. of Shares
Convertible Preferred Stock
Opening Balance
Series B
Series D
Series E
Series F
Series G
Clossing Balance

FY 08A

FY 09A

199,998
6,560,174

6,760,172

4,406,160

6,760,172

11,166,332

160,895,998
6,000,000
60,000
1,000,000
167,955,998

167,955,998
2,010,498
1,180,000
1,800,000
172,946,496

1,000
(1,000)
-

Common Stock
Opening Balance
Issuance of Common Stock
Conversion of preferred stock
Stock issued in connection with business combinations
Repurchase
Clossing Balance

2
1
3

3
3

Additional Paid in Capital

Opening Balance
Issuance of Common Stock
Vesting of restricted Stock Units
Conversion of preferred stock
Exercise of Stock Options
Stock-based Compensation
Redemption of preferred stock
Stock issued in connection with business combinations
Adjstment of reddeemable noncontrolling interests
Preferred stock distributions
Preferred stock dividends
Common Stock Dividends

72
999
1
24
(339)
(277)
-

480
144
216
115
(955)
-

Common Stock
Opening Balance
Conversion of preferred stock
Exercise of stock options
Vesting of restricted stock units
Stock issued in connection with business combinations
Issuance of Common Stock
Repurchase
Closing Balance
Amount
Convertible Preferred Stock
Opening Balance
Conversion of preferred stock
Proceeds from issuance of stock (net of issuance costs)
Reclassification of redeemable preferred stock
Clossing Balance

Reclassification of redeemable preferred stock

Repurchase
Closing Balance

480

Treasury Stock

Stockholder Receivable

(144)

Accumulated Other (Income) Loss

Accumulated Deficit
Opening Balance
Net loss and comprehensive loss
Common stock dividends, $0.125 per share
Preferred stock dividends
Closing Balance

(1,032)
(1,542)
(2,574)

(2,574)
(1,341)
(20,338)
(5,575)
(29,828)

Closing Balance

(2,091)

(29,969)

FY 10A

FY 11E

FY 12E

FY 13E

FY 14E

FY 15E

11,166,332
(301,877)
(278,507)
4,202,658
14,245,018
29,033,624

29,033,624
29,033,624

29,033,624
29,033,624

29,033,624
29,033,624

29,033,624
29,033,624

29,033,624
29,033,624

172,946,496
1,214,332
82,500
43,117,156
(46,664,328)
170,696,156

170,696,156
170,696,156

170,696,156
170,696,156

170,696,156
170,696,156

170,696,156
170,696,156

170,696,156
170,696,156

2
1
3

3
3

3
3

3
3

3
3

3
3

3
1
1
4

4
4

4
4

4
4

4
4

4
4

584,656
369
22160
(55,003)
348,016
(12,425)
(1,362)
-

921,122
-

921,122
-

921,122
-

921,122
-

921,122
-

34,711
921,122

921,122

921,122

921,122

921,122

921,122

(503,173)

(286)

9,875

(29,828)
(389,640)
(419,468)

(419,468)
(199,768)
(619,236)

(619,236)
92,742
(526,494)

(526,494)
155,406
(371,089)

(371,089)
250,954
(120,135)

(120,135)
484,982
364,848

8,077

301,893

394,635

550,040

800,994

1,285,977

Adjusted CSOI
(Unless otherwise specified, all financials are in US $ Thousand)

FY 08A

FY 09A

(1,632)

(1,077)

162
99%

4,446
98%

24

115

Acquisition Related

Total Adjustments

186

4,561

(1,446)

3,484

(Loss) Income from Operations

Adjustments
Online Marketing
% of Sales & Marketing Expense
Stock Based Compensation

Adjusted CSOI

FY 10A

FY 11E

FY 12E

FY 13E

FY 14E

FY 15E

(420,344)

(197,264)

163,410

264,219

417,733

793,266

241,546
92%

852,958
96%

1,946,174
95%

3,226,768
94%

4,633,951
95%

6,030,410
95%

36,168

203,183

480,897

852,958

1,946,174

3,226,768

4,633,951

6,030,410

60,553

655,694

2,109,584

3,490,987

5,051,683

6,823,675

Revenue Build-Up
(Unless otherwise specified, all financials are in US $ Thousand)

31-Mar-09
FY 2009

30-Jun-09
FY 2009

Quarterly Schedule of Revenue

Number of Subscribers
Growth rate of Subscribers

152,203

Number of Cumulative customers

Growth rate of Cumulative costomers

Number of Featured merchants

Growth rate of featured merchants
Number of Groupons sold
Growth rate of Gropons sold
Gross Profit
Percentage of revenue
Total Revenue per Quarter

6,840

36,174
429%

74

212
186%

27,221

116,231
327%

83
33%

1,209
37%

252

3,301

Revenue per Coupon Sold

USD($)

28

Revenue per Featured merchant

USD($)

3,405

15,571

Revenue per Customer

USD($)

37

91

Revenue per Subscriber

USD($)

22

Groupon Sold per subscriber

Groupon Sold per customer

Groupon Sold per merchant

368

548

Annual Schedule
Yearly Revenue
Total Revenue
Number of Subscribers
Growth Rate of Subscribers
Number of Cumulative Customers
Growth Rate of Cumulative Customers
Number of Featured Merchants
Growth Rate of Subscribers

FY 2009
30,471
1,807,278

375,099

2,695

Number of Groupons Sold

Growth Rate of Groupons Sold

1,248,792

30-Sep-09
FY 2009

31-Dec-09
FY 2009

31-Mar-10
FY 2010

30-Jun-10
FY 2010

30-Sep-10
FY 2010

31-Dec-10
FY 2010

474,848
212%

1,180,227
149%

3,434,610
191%

7,010,911
104%

10,924,087
56%

29,214,197
167%

110,457
205%

221,628
101%

874,017
294%

1,505,594
72%

2,243,656
49%

4,408,540
96%

765
261%

1,644
115%

2,903
77%

9,565
229%

18,722
96%

35,099
87%

340,471
193%

764,869
125%

1,760,398
130%

4,062,458
131%

8,237,733
103%

16,235,481
97%

3,996
40%

5,641
33%

19,985
45%

34,373
39%

72,287
39%

153,309
39%

9,998

16,920

44,236

87,298

185,231

396,600

29

22

25

21

22

24

13,069

10,292

15,238

9,127

9,894

11,299

91

76

51

58

83

90

21

14

13

12

17

14

445

465

606

425

440

463

FY 2010

FY 2011

FY 2012

FY 2013

FY 2014

FY 2015

713,365

3,542,724

8,170,491

13,944,121

20,250,778

26,442,187

50,583,805
2699%

162,365,585
221%

264,714,774
63%

378,696,376
43%

502,946,286
33%

628,021,784
25%

9,031,807
2308%

33,816,074
274%

55,132,462
63%

82,736,829
50%

115,475,831
40%

146,096,410
27%

66,289
2360%

392,243
492%

1,069,713
173%

2,025,066
89%

3,148,783
55%

4,290,129
36%

30,296,070
2326%

194,078,485
541%

522,014,197
169%

892,473,059
71%

1,245,625,067
40%

1,575,925,883
27%

31-Mar-11
FY 2011

30-Jun-11
FY 2011

30-Sep-11
FY 2011

31-Dec-11
FY 2011

31-Mar-12
FY 2012

30-Jun-12
FY 2012

32,516,201
11%

37,393,631
15%

43,002,676
15%

49,453,077
15%

55,387,446
12%

62,033,940
12%

6,772,188
54%

7,788,016
15%

8,956,219
15%

10,299,651
15%

11,535,610
12%

12,919,883
12%

56,781
62%

79,493
40%

111,291
40%

144,678
30%

188,081
30%

235,102
25%

28,094,743
73%

39,332,640
40%

55,065,696
40%

71,585,405
30%

93,061,027
30%

116,326,283
25%

644,728

736,901

967,194

1,193,901

1,516,144

1,846,984

23

23

23

23

23

23

11,355

11,201

11,352

10,705

10,968

11,147

95

75

75

79

83

83

20

15

15

15

16

16

495

477

492

506

518

524

270,000
42%

30-Sep-12
FY 2012

31-Dec-12
FY 2012

31-Mar-13
FY 2013

30-Jun-13
FY 2013

30-Sep-13
FY 2013

69,478,013
12%

77,815,374
12%

84,040,604
8%

90,763,853
8%

98,024,961
8%

14,470,269
12%

16,206,701
12%

17,827,371
10%

19,610,108
10%

21,571,119
10%

293,877
25%

352,653
20%

405,550
15%

466,383
15%

536,341
15%

145,407,854
25%

167,219,032
15%

192,301,887
15%

211,532,076
10%

232,685,284
10%

2,235,688

2,571,674

2,923,758

3,265,551

3,660,950

23

23

23

23

23

11,121

11,082

11,062

11,014

11,066

82

80

80

81

82

16

16

16

16

16

10

12

14

16

19

536

548

559

570

582

31-Dec-13
FY 2013

31-Mar-14
FY 2014

30-Jun-14
FY 2014

30-Sep-14
FY 2014

31-Dec-14
FY 2014

105,866,958
8%

113,277,645
7%

121,207,080
7%

129,691,576
7%

138,769,986
7%

23,728,231
10%

25,626,489
8%

27,676,608
8%

29,890,737
8%

32,281,996
8%

616,792
15%

678,471
10%

746,318
10%

820,950
10%

903,045
10%

255,953,812
10%

276,430,117
8%

298,544,526
8%

322,428,088
8%

348,222,335
8%

4,093,862

4,446,189

4,830,931

5,255,768

5,717,890

23

23

23

23

23

11,082

11,071

11,063

11,060

11,059

81

81

81

81

81

16

16

16

16

16

10

13

15

22

25

29

33

39

594

606

618

631

644

31-Mar-15
FY 2015

30-Jun-15
FY 2015

30-Sep-15
FY 2015

31-Dec-15
FY 2015

145,708,485
5%

152,993,909
5%

160,643,605
5%

168,675,785
5%

33,896,096
5%

35,590,901
5%

37,370,446
5%

39,238,968
5%

966,258
7%

1,033,896
7%

1,106,268
7%

1,183,707
7%

365,633,452
5%

383,915,125
5%

403,110,881
5%

423,266,425
5%

6,055,803

6,411,108

6,787,505

7,187,771

23

23

23

23

11,067

11,067

11,064

11,063

81

81

81

81

16

16

16

16

19

23

28

34

45

52

60

69

657

670

684

698

Cost Build-Up
31-Mar-09
FY 2009

30-Jun-09
FY 2009

Cost of Revenue
Cost of Revenue as % of Total Revenue

169
67%

2,092
63%

Yearly Cost
Cost Of Revenue
Cost of Revenue as % of Total Revenue

FY 2008
89
95%

FY 2009
19,542
64%

163
173%

4,548
15%

1,474
1568%

7,458
24%

0%

0%

(Unless otherwise specified, all financials are in US $ Thousand)

Sales & Marketing

Marketing as % of Total Revenue
General & Administrative
Selling, general & Administrative as % of Total Revenue
Acquisition-related
Acquisition-related as % of Total Revenue
Depreciation
Depreciation as % of Total Revenue

74
0%

Amortization
Amortization as % of Total Revenue

31
0%

30-Sep-09
FY 2009

31-Dec-09
FY 2009

31-Mar-10
FY 2010

30-Jun-10
FY 2010

30-Sep-10
FY 2010

31-Dec-10
FY 2010

31-Mar-11
FY 2011

6,002
60%

11,279
67%

24,251
55%

52,925
61%

112,944
61%

243,291
61%

374,728
58%

FY 2010
433,411
61%

FY 2011
1,968,626
56%

FY 2012
4,085,245
50%

FY 2013
7,335,327
53%

FY 2014
10,922,703
54%

FY 2015
14,014,359
53%

263,202
37%

885,681
25%

2,042,623
25%

3,416,310
25%

4,860,187
24%

6,346,125
24%

233,913
33%

885,681
25%

1,879,213
23%

2,928,265
21%

4,050,156
20%

5,288,437
20%

203,183
28%

0%

0%

0%

0%

0%

2,005
0%

2,905
0%

3,242
0%

3,512
0%

3,725
0%

3,777
0%

11,370
2%

11,370
0%

11,370
0%

11,370
0%

11,370
0%

11,370
0%

30-Jun-11
FY 2011

30-Sep-11
FY 2011

31-Dec-11
FY 2011

31-Mar-12
FY 2012

30-Jun-12
FY 2012

30-Sep-12
FY 2012

31-Dec-12
FY 2012

405,296
55%

531,957
55%

656,645
55%

758,072
50%

923,492
50%

1,117,844
50%

1,285,837
50%

31-Mar-13
FY 2013

30-Jun-13
FY 2013

30-Sep-13
FY 2013

31-Dec-13
FY 2013

31-Mar-14
FY 2014

30-Jun-14
FY 2014

30-Sep-14
FY 2014

1,461,879
50%

1,763,398
54%

1,940,304
53%

2,169,747
53%

2,445,404
55%

2,608,703
54%

2,838,114
54%

31-Dec-14
FY 2014

31-Mar-15
FY 2015

30-Jun-15
FY 2015

30-Sep-15
FY 2015

31-Dec-15
FY 2015

3,030,482
53%

3,209,576
53%

3,397,887
53%

3,597,377
53%

3,809,519
53%

Assets Schedule
Estimated Life of Furniture & Fixtures
Years
Estimated Life of Leasehold Improvements
Years
Estimated Life of Computer hardware and other
Years
Estimated Life of External Software
Years
Extimated life of office and telephone equipment
Years
(Unless otherwise specified, all financials are in US $ Thousand)

5.0
5.0
3.0
3.0
3.0
FY 08A

FY 09A

Property & Equipments

Furniture & Fixtures
Opening Balance
Addition of Asset
Removal of Asset
Closing Balance
Accumulated Depreciation
Net

258
258
55
203

Leasehold Improvements
Opening Balance
Addition of Asset
Removal of Asset
Closing Balance
Accumulated Depreciation
Net
Computer Equipments
Opening Balance
Addition of Asset
Removal of Asset
Closing Balance
Accumulated Depreciation
Net
External Software
Opening Balance
Addition of Asset
Removal of Asset
Closing Balance
Accumulated Depreciation
Net

0
33
33
7
26

Office and telephone equipment

Opening Balance
Addition of Asset
Removal of Asset
Closing Balance
Accumulated Depreciation
Net

57
57
12
45

Total Gross Assets

Accumulated Depreciation

348
74

Depreciation Expense
Furnitures & Fixtures
Leasehold Improvements
Computer Equipments
External Software
Office and telephone equipment
Total Depreciation Expense

55
7
12
74

Intangible Assets
Subscriber relationships
Opening Balance-Gross
Addition of Asset
Removal of Asset
Closing Balance-Gross
Accumulated Amortization
Net Patents
Merchant relationships
Opening Balance-Gross
Addition of Asset
Removal of Asset
Closing Balance-Gross
Accumulated Amortization
Net
Trade names
Opening Balance-Gross
Addition of Asset
Removal of Asset
Closing Balance-Gross
Accumulated Amortization
Net
Developed technology
Opening Balance-Gross
Addition of Asset
Removal of Asset
Closing Balance-Gross
Accumulated Amortization
Net
Other Intangible Assets
Opening Balance-Gross
Addition of Asset
Removal of Asset
Closing Balance-Gross
Accumulated Amortization
Net
Amortization Expense
Subscriber relationships
Merchant relationships
Trade names
Developed technology
Other intangible assets

270
270
31
239

31

Total Amortization Expense

Total Intangible Assets
Amortization

31
270
31

FY 10A

FY 11E

FY 12E

FY 13E

FY 14E

FY 15E

258
6,488
6,746
835
5,911

6,746
3,000
9,746
1,726
8,020

9,746
3,000
12,746
2,828
9,918

12,746
3,000
15,746
4,120
11,626

15,746
3,000
18,746
5,582
13,164

18,746
2,000
20,746
7,099
13,647

5,233
5,233
560
4,673

5,233
5,233
1,027
4,206

5,233
5,233
1,448
3,785

5,233
5,233
1,826
3,407

5,233
5,233
2,167
3,066

5,233
5,233
2,474
2,759

3,396
3,396
450
2,946

3,396
1,876
5,272
1,254
4,018

5,272
1,366
6,638
2,151
4,487

6,638
1,282
7,920
3,113
4,808

7,920
1,194
9,114
4,113
5,001

9,114
1,059
10,173
5,123
5,050

33
1,741
1,774
117
1,657

1,774
998
2,772
560
2,213

2,772
716
3,489
1,048
2,441

3,489
674
4,163
1,567
2,596

4,163
628
4,790
2,104
2,686

4,790
557
5,347
2,645
2,702

57
1363
1,420
117
1,303

1,420
500
1,920
418
1,503

1,920
500
2,420
751
1,669

2,420
500
2,920
1,113
1,807

2,920
500
3,420
1,497
1,923

3,420
500
3,920
1,901
2,019

18,569
2,079

24,943
4,984

30,526
8,226

35,982
11,739

41,304
15,464

45,419
19,241

780
560
450
110
105
2,005

891
467
804
443
301
2,905

1,102
421
897
488
334
3,242

1,292
379
962
519
361
3,512

1,463
341
1,000
537
385
3,725

1,516
307
1,010
540
404
3,777

36,389
36,389
3,760
32,629

36,389
36,389
3,760
32,629

36,389
36,389
3,760
32,629

36,389
36,389
3,760
32,629

36,389
36,389
3,760
32,629

36,389
36,389
3,760
32,629

6,789
6,789
3,801
2,988

6,789
6,789
3,801
2,988

6,789
6,789
3,801
2,988

6,789
6,789
3,801
2,988

6,789
6,789
3,801
2,988

6,789
6,789
3,801
2,988

5,619
5,619
3,230
2,389

5,619
5,619
3,230
2,389

5,619
5,619
3,230
2,389

5,619
5,619
3,230
2,389

5,619
5,619
3,230
2,389

5,619
5,619
3,230
2,389

2,054
2,054
395
1,659

2,054
2,054
395
1,659

2,054
2,054
395
1,659

2,054
2,054
395
1,659

2,054
2,054
395
1,659

2,054
2,054
395
1,659

270
1,024
1,294
184
1,110

1,294
1,294
184
1,110

1,294
1,294
184
1,110

1,294
1,294
184
1,110

1,294
1,294
184
1,110

1,294
1,294
184
1,110

3,760
3,801
3,230
395
153

11,339

52,145
11,370

52,145
11,370

52,145
11,370

52,145
11,370

52,145
11,370

52,145
11,370

Valuation Sheet
Risk Free Rate
Market Risk Premium
Beta
Cost of Equity
Tax Rate
Terminal Growth Rate
No of Shares Outstanding
Tax Rate

%
%

4.67%
5%
1.368
12%
34%
3%
630,400
34%

%
%
%
Thousands
%

(Unless otherwise specified, all financials are in US $ Thousand)

FY 08A

Free Cash Flow Calculation

Profit After Tax
Add: Depreciation & Amortization
Add: Interest*(1-Tax Rate)
Less: Increase in Working Capital
Increase in Accounts Receivables
Increase in Prepaid Expenses and Other Current Assets
Increase in Deferred Income Taxes
Increase in Other Assets
Decrease in Accounts Payable
Decrease in Accrued Merchant Payable
Decrease in Accrued Expenses
Decrease in Due to Related Parties
Decrease in Deferred Tax Liabilities
Decrease in Other Liabilities
Less: Fixed Investments
Free Cash Flow to the Firm
Less: Interest*(1-Tax)
Add: Net Borrowings
Free Cash Flow to the Equity (FCFE)
Present Value of FCFE
Terminal Value of FCFE
Total Free Cash Flow to Equity
Value Per share

$ US

2,706,606
6,491,782
9,198,389
15

FY 09A

FY 10A

FY 11E

FY 12E

FY 13E

FY 14E

FY 15E

(426,761)
(2,005)
-

(211,539)
(2,905)
-

98,207
(3,242)
-

164,562
(3,512)
-

265,741
(3,725)
-

513,558
(3,777)
-

41,806
11,322
14,544
3,626
(57,361)
(158,085)
(93,487)
(13,321)
(17,814)
(20,736)
70,096
(209,356)

122,597
129,094
(136,579)
(404,427)
(362,231)
6,374
430,728

193,155
185,111
(208,806)
(577,033)
(519,905)
5,582
1,016,861

253,091
91,504
(208,321)
(529,426)
(553,394)
5,456
1,102,140

220,975
189,200
(276,456)
(351,783)
(288,717)
5,322
763,475

254,441
185,742
(126,516)
(90,297)
(292,805)
4,116
575,099

1,017
(208,339)

430,728

1,016,861

1,102,140

763,475

575,099

DuPont Analysis- FY 2012

Sales
8,170,491
Cost of Sales

Income Statement

4,085,245
Operating
Expense

Earnings
Available
98,207

divided by

3,936,447
Interest Expense
-

Sales
8,170,491

Tax Expense
50,591
Others
-

Sales
8,170,491
Current Assets

Balance Sheet

2,783,526
+
Net Fixed Assets
(PPE)
40,775

divided by

Total Assets
2,824,301

Total Liabilities
2,581,021
Current Liabilities
2,580,004

+
Long Term Debt
1,017

Stockholder
Equity (SE)
397,618

sis- FY 2012

Net Profit Margin

1.2%

multiplied by

Return on Total Assets

(ROA)
3.5%

Total Asset
Turnover
2.89

multiplied by

Return on
Common Equity
(ROE)
26.0%

Total Liab + SE =
Total Assets
2,978,639

divided by

Financial Leverage
multiplier
7.49

Common stock
equity
397,618

Ratios
FY 08
Profitability Ratios
EBITDA Margins

FY 09

94%

EBIT Margins

94%

EBT Margins

105%

Net Profit Margin

Return on Investment Ratios
Return on Assets (ROA)

-1640%

-10%

Return on Invested Capital (RoIC)

-33%

Return on Stockholder's Equity

-30%

Activity Ratios
Asset Turnover Ratio

1%

Average Day's Sales

83

No. of Days of Receivables

Working Capital Turnover

Solvency and Leverage Ratios

Current Ratio
Acid Test Ratio

141%
126%

FY 10

FY 11

FY 12

FY 13

FY 14

FY 15

96%

68%

54%

43%

32%

25%

96%

68%

54%

42%

32%

25%

100%

112%

103%

99%

99%

98%

-5%

-60%

-6%

1%

1%

1%

-112%

-13%

3%

4%

5%

8%

-11%

-142%

-53%

27%

31%

31%

-4478%

-69%

25%

30%

33%

40%

8%

45%

119%

185%

249%

307%

1954

9706

22385

38203

55482

72444

22

17

16

16

15

15

-4

31

40

39

33

24

52%

109%

108%

109%

113%

121%

43%

96%

95%

98%

100%

105%

FY 08

FY 09

FY 10

FY 11

FY 12

FY 13

FY 14

FY 15

150%
Activity Ratio

Return on Investment Ratio

Profitability Ratio

Profitability Ratios
EBITDA Margins
EBIT Margins
EBT Margins
Net Profit Margin

100%

Return on Investment Ratios

Return on Assets (ROA)
Return on Invested Capital (RoIC)
Return on Stockholder's Equity (ROE)

50%

Activity Ratios
0%
FY 09

-50%

-100%

-150%

-200%

FY 10

Asset Turnover
Average Day's Sales
FY 11
No. of Days of Receivables
Working Capital Turnover

Ratio Analysis

FY 09
94%
94%
105%
-1640%

FY 10
96%
96%
100%
-5%

FY 11
68%
68%
112%
-60%

FY 12
54%
54%
103%
-6%

FY 13
43%
42%
99%
1%

FY 14
32%
32%
99%
1%

FY 15
25%
25%
98%
1%

-10%
-33%
-30%

-112%
-11%
-4478%

-13%
-142%
-69%

3%
-53%
25%

4%
27%
30%

5%
31%
33%

8%
31%
40%

0.00
0.00
FY 14
0.00
0.00

0.00
0.00
0.00
0.00

0.00
0.00
FY 15
0.00
0.00

0.00
0.00
FY 12
0.00
0.00

0.00
0.00
0.00
0.00

0.00
0.00
FY 13
0.00
0.00

0.00
0.00
0.00
0.00

1.00
EBITDA Margins
0.90

0.80

0.70

0.60

Return on Assets (ROA)

Return on Invested Capital (RoIC)

EBIT Margins

FY 15
0.50
EBT Margins
0.40
No. of Days of Receivables
0.30

0.20

0.10

0.00

Working Capital Turnover