Paytm share price is almost 70 percent lower than its upper price band today 2150. One97 shares have been on the decline ever since it was listed on the Indian stock exchanges and continues to be an ideal ‘Sell on Rise’ stock for Dalal Street bulls. However, after hitting the life-time low 510, One97 share price on NSE has bounced back giving a ray of hope to its positional investors. According to the JP Morgan report, Paytm share price is set to give some sharp bounce and it can achieve a four-digit price by the end of March 2023.
on the evaluation of paytm shareThe JPMorgan research report states, “We value Paytm using DCF valuation baking in rising cost of capital with 18.5 percent COE and 20x exit multiple, meaning 1,000 pts. This SOTP valuation benchmarking EV / Sales Multiple. At 4x/10x/4x/8x for their global counterparts for payment/financial services/commerce/cloud businesses.”
On the company’s fundamentals, which could fuel the Paytm share price rally over the next six months, the brokerage said, “PAYTM is the leading “fintech horizontal” in India with a combined footprint in payments, commerce and financial services across all its portfolios. Has created more sources of monetization. Competitive. This gives it the unique ability to monetize and drive profits across multiple sectors at low CAC vs. equivalents.”
“We expect PAYTM to see strong revenue growth across all of its business segments due to device monetization in payments, cross-selling of financial services, ticket collection and increased ad monetization. We see revenues from F22-26~ Growing at 40% CAGR. $2.8bn and CMs grew to 44% by FY26E. We see it maintaining the highest revenue and profit levels among local vertical and global horizontal peers,” said the brokerage report Is.
On its suggestion to stock market investors, the JPMorgan report says, “We value Paytm using DCF valuation baking in rising cost of capital with 18.5 percent COE and 20x exit multiplier, which is Rs 1,000. It’s March-23 PT. It’s 4x/10x/4x/8x backed by benchmarking EV/sales multiples SOTP evaluation for its global counterparts for payments/financial services/commerce/cloud businesses.”
Disclaimer: The views and recommendations given above are those of individual analysts or broking companies and not of Mint.
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