MoneyOnMobile Inc (MOMT)

[royzim]

From the full version:

"While conventional valuation methods could be used when looking at MOMT, the company has a different exit strategy for shareholders. Rather than building a business based on sales and profitability, it is a business that would be an attractive acquisition candidate for a large company looking to quickly scale in India. It is also an ideal tuck in for companies that have a platform to serve the banked and smartphone customers of India, but have no plan to reach the un- and under-banked and those using cash. These large companies such as Google and PayPal would be interested in MOMT as a strategic acquisition saving time to market and legwork. In this circumstance the company believes it should be valued as a multiple of number of customers. MOMT has 220 million customers. The acquirer would consider the cost of buying MOMT versus its customer acquisition cost and add to that a premium for the network, and the speed to gaining market share."