Document Type Master's Dissertation Author Spratt, Justin URN etd-03272010-161624 Document Title Analysis of why high growth internet companies in South Africa trade at a premium over "traditioal" companies upon buyout or listing Degree MBA Department Gordon Institute of Business Science Supervisor
Advisor Name Title Mr G Fisher Supervisor Keywords
- information technology
Date 2008-04-04 Availability unrestricted Abstract
The last decade has provided some valuations of internet companies that defy traditional financial models. The stock market crash of 2001 corrected and cleaned out much of the misallocated capital. However, internet Companies in both America and South Africa still trade and sell at significant premiums versus their industrial counterparts.
There are also clear and distinct differences in growth patterns that accompany valuations of successful companies. It appears that revenue growth timelines can be successfully compressed when compared hose of traditional industrial companies. Google, Amazon, Yahoo and eBay are good examples of this phenomenon, growing at rapidly, and turning a profit in equally short measure.
This paper examines these internet premiums in South Africa, what the legitimate accelerated revenue premiums are and what can be discarded as bubble-type hype.
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Please cite as follows:
Spratt, J 2007, Analysis of why high growth internet companies in South Africa trade at a premium over “traditional” companies upon buyout or listing, MBA dissertation, University of Pretoria, Pretoria, viewed yymmdd < http://upetd.up.ac.za/thesis/available/etd-03272010-161624/ >
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