Posts tagged: cloud

When will Amazon enter Vietnam?

By , August 18, 2016 6:41 am

Amazon Web Services

  • AWS would be a good first product for lack of competition.
  • In the enterprise and cloud business, Microsoft already secured the position, especially e-government.
  • Selling to startup community is traditional and natural, but governmental sector is promising.

e-Commerce

  • e-Commerce itself might be challenging since the infrastructure is not there yet.
  • Providing logistical and warehousing services in the two megacities would be pretty straight-forward, scaling to rural areas would be challenging in terms of cost-benefit.
  • Competition: Chinese goods from Alibaba-Lazada, Thai-Japanese-Korean products from grey market, and even US import through grey market.

Valuation Revisited – where do we go to the cloud from here?

By , January 13, 2016 12:51 pm

One Hedge Fund Manager trading public whom I highly respect told me Private Equity would prefer Free Cash Flow because PE funds exert more control over the business and financial of the business.

For the PE deals I’ve done I have used models not in the CFA, nor Damodaran, nor Bodie Kane Marcus, nor Fama French, nor Palepu. I went back to the core business model and devise valuations based on its value chain.

Which made sense to the buyout investors I’ve been working with.

Financial investors would rely on FCF though and I agree by all means they should.

Regardless of backstage financial modelling and quant, negotiations are done on multiples. In fact, multiples do not ONLY look at profitability but also embed implied information on risk and growth. I always assumed all analysts understood that but my presumption was proven wrong time to time.

Oh, and about Venture Capital. Mostly multiples on the cloud.

I’ve been working on both industry and academic and, despite what street smarts think of the ivory tower, academic models are not naïve. It’s how one tailors and adjusts it to reflect one’s investment thesis.

Being proficient with many peer reviewed and proven valuation models then building models for one’s own from scratch should be the minimum requirement for junior equity analysts.

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