PDF Publication Title:
Text from PDF Page: 060
5 Conclusion Overlooking the macro developments and trends in the mobile Internet market and short video industry, as well as unique characteristics of Internet companies that set them apart from traditional firms, we discussed existing approaches on company valuation and conclude that given the limited financial and operating data available to public, it is most suitable to look at Douyin under a relative valuation approach. The revenue model of Douyin was first reviewed and discussed, the potential fluctuations of its key revenue drivers were then examined one by one to derive the future revenue projection. We adopted the methodology proposed by Cauwels and Sornette and predicted Douyin’s future user growth. We looked into the potential user population under three different growth scenarios – base, high, and extreme growth, and estimated the value of Douyin accordingly. Four companies in similar industry were selected to act as comparables, their financial multiples were calculated and used as a base when valuing Douyin. In 2018, ByteDance reached total revenue of 50 billion CNY (7.1 billion USD)34, the lower end of its target. Together with its most recent valuation at 75 billion USD, it gives the company a sales multiple of 10.5635. This number seems to be at a higher end of the industry standard. From Table 8 we observe that the P/S multiples of the four comparable companies are in a range of 3.5 to 10. Comparing ARPU across the companies, we also see that Douyin’s ARPU is higher than Weibo and iQIYI in the same market, as well as Facebook’s Asia Pacific segment. We therefore view it as highly likely to decrease and revert to industry mean in the future. 34 In this thesis, the foreign exchange rate for USD/CNY is assumed to be fixed at 7 (1 USD = 7 CNY, 1 CNY = 0.14 USD), long-term, unless otherwise stated. 35 P/S of ByteDance was calculated by dividing its market cap (most recent value) by its sales from the most recent financial year 2018. 75 bn USD / 7.1 bn USD = 10.56. - 60 -PDF Image | Analysis of ByteDance with a close look on Douyin TikTok
PDF Search Title:
Analysis of ByteDance with a close look on Douyin TikTokOriginal File Name Searched:
thesis-tiktok-bytedance.pdfDIY PDF Search: Google It | Yahoo | Bing
Cruise Ship Reviews | Luxury Resort | Jet | Yacht | and Travel Tech More Info
Cruising Review Topics and Articles More Info
Software based on Filemaker for the travel industry More Info
The Burgenstock Resort: Reviews on CruisingReview website... More Info
Resort Reviews: World Class resorts... More Info
The Riffelalp Resort: Reviews on CruisingReview website... More Info
CONTACT TEL: 608-238-6001 Email: greg@cruisingreview.com (Standard Web Page)