Equity Valuation Analysis Report - Tencent Holdings Limited

Equity Valuation Analysis Report ACCT6111E Business Valuation Analysis Instructor: Professor Albert Tsang Team members Name Student ID Winnie Yam 1155025593 Sherry Zhang 1155023131 Fiona Tong 1093644801 Tommy Wu 1155021510 Robert Pun 1155026071 21 November 2013 TABLE OF CONTENTS 1.0 Executive summary [3] 2.0 Industry overview [4] 3.0 Company overview [6] 4.0 Financial statement analysis [12] 5.0 Profitability analysis [23] 6.0 Company valuation [27] 7.0 Concerns beyond financials [32] 8.0 Recommendations [35] Bibliography [36] List of Exhibits [37] List of Appendix [48]†¦show more content†¦Participants may also take the advantage of weak enforcement of intellectual property protection, e-commerce and anti-trust laws and regulations to expand their businesses apart from their successful business strategies, which resulted in the emergency of giants like Baidu (online search engine), Tencent (instant messenger) and Alibaba (e-commerce platform). As a result, the threat of new entrant is moderate at the moment because of the user lock-in effect and dominant market position enjoyed by existing giants, which constitutes high entry barrier for potential entrants. The threat of substitutes in the industry is rather low at the moment due to the user lock-in effect and dominant market position enjoyed by existing giants, resulting in a higher switching cost and hence a relatively lower bargaining power of buyers. The bargaining power of suppliers, on the other hand, could be considered moderate for the time being due to their good reliance on vendors to provide develop and maintain high-quality online business interfaces. From the above discussion, the competition within the industry is rather moderate at the moment and the industry/ market is still growing thatShow MoreRelatedBaidu Valuation at IPO9089 Words   |  37 Pagesï » ¿Baidu CASE: A-197 DATE: 02/05/09 BAIDU.COM, INC.: VALUATION AT IPO Since its official launch in January 2000, Baidu.com, Inc. (Baidu) quickly grew to become the leading Internet search engine in China. After three rounds of private funding, Baidu registered to go public on the NASDAQ Stock Market (Ticker Symbol: BIDU) on August 5, 2005. (See Exhibits 1 and 2 for a listing of Baidu’s private funding sources and pre-IPO share allocations.) The initial public offering (IPO) turned out to be oneRead MoreManaging Information Technology (7th Edition)239873 Words   |  960 PagesNetworking Strategy 321 PART III Acquiring Information Systems 327 Chapter 8 Basic Systems Concepts and Tools The Systems View What Is a System? 329 329 330 Seven Key System Elements Organizations as Systems 330 334 Systems Analysis and Design 335 Business Processes 336 Identifying Business Processes 336 Business Process Redesign 336 Processes and Techniques to Develop Information Systems 339 The Information Systems Development Life Cycle 339 Structured