Financial Management & Corporate Finance Case Study

Case Title:

Max Software Services: Relative Valuation

Abstract:
This case study is primarily written to explicate the concept of Relative Valuation. It is widely used by venture capital and private equity firms. It is one of the frequently used methods in valuing companies in all economic conditions, especially in valuing unlisted companies. This case study lucidly explains the concept of relative valuation with the help of multiples of top four Indian IT players (TCS, Infosys, Wipro and HCL Tech) to find out the true value of the privately held Max Software Services. This case study also provides adequate background data of the companyto discuss each multiple used in relative valuation.

Pedagogical Objectives:

• To understand the superiority of relative valuation when compared to other forms of valuation
• To understand and interpret each of themultiples used in relative valuation
• To understand how to estimate the value of private companies.

Keywords : Relative Valuation; Global Financial Crisis; International Financial Markets; Indian Stock Market; NASSCOM; Financial Management; Managerial Finance; Corporate Finance; MBA; Finance for Managers; Principles of Financial Management; Business Finance; Course Case Maps; Financial Management Course Case Pack; Financial Management Course Case; Course Case Packs