Case study: Valuation of the cross border payment Fintech QWest X Executive summary The Fintech QWespx specializes in digital cross border pamments from smart phone and tablet interface. The company was created 7 years ago and is still private. We wish to value the company five years from now. Today it boasts 5 million customers and handies over 55 billions worth of transaction volume per month on which it takes a fee that is much below the eitablathed players in the global cross border payments industry. Your goal is to estimate using several methods of your choice the value of this company. Feel free to add any available information that you deem useful to make yourvaluation more accurate. Make reasonable assumptions and try to use several valuation methods to comiort your estimates. Company information and histery 1. The company is expected to grow because it is much more competitive than the big players who charge anything between 6. gst fee while QWest is convenient and much cheaper. 2. its services are already available in 39 countries (representing 60% of the World G0P) but only has 7 offices throughout the world, maintainipg a fairly low cont base. This infrastructure is sufficient to deploy the company services across countries with great efficiency 3. To attract new customers, the company expands its services to new use cases including multiple currency accounts for retail customers and small, free readity avalable credit cards, the ability to trade cryptocurrencies and major indices and soon moit of the listed stocis on major equity markets. 4. Yet, as it stands the bulk of its business is focused on eross border puyments: including real estate and equipment. This is rather small compared to the largest players. QWestC nearly doubled ins revenue in the past two vears from 570 millons to $135 millions while its expenses went from 550 milion to $65 million. thwrencen averee fiass fectratabien froes of apgomita 7. Ttar uombary it whadr profealie afot only 7 pers tf eeesihe 1. Aecou it the furdins hosery of the comody I Chasedal trantwhina! buabera. Slate of the hindestry \begin{tabular}{l|r|} \hline Company & EBIT Margin \\ \hline Square Inc & 1,60% \\ \hline Information Technology & 3,40% \\ \hline Euronet Worldwide & 13,20% \\ \hline Paypal holding Inc & 16,30% \\ \hline Fidelity National Informa & 16,70% \\ \hline First Data Corporation & 18,20% \\ \hline Total System Services, Inc & 18,40% \\ \hline Global Payment Inc & 20,30% \\ \hline Alliance Data System Cor & 22,70% \\ \hline Mastercard inc & 52,40% \\ \hline Visa Inc & 62,90% \\ \hline \end{tabular} Case study: Valuation of the cross border payment Fintech QWest X Executive summary The Fintech QWespx specializes in digital cross border pamments from smart phone and tablet interface. The company was created 7 years ago and is still private. We wish to value the company five years from now. Today it boasts 5 million customers and handies over 55 billions worth of transaction volume per month on which it takes a fee that is much below the eitablathed players in the global cross border payments industry. Your goal is to estimate using several methods of your choice the value of this company. Feel free to add any available information that you deem useful to make yourvaluation more accurate. Make reasonable assumptions and try to use several valuation methods to comiort your estimates. Company information and histery 1. The company is expected to grow because it is much more competitive than the big players who charge anything between 6. gst fee while QWest is convenient and much cheaper. 2. its services are already available in 39 countries (representing 60% of the World G0P) but only has 7 offices throughout the world, maintainipg a fairly low cont base. This infrastructure is sufficient to deploy the company services across countries with great efficiency 3. To attract new customers, the company expands its services to new use cases including multiple currency accounts for retail customers and small, free readity avalable credit cards, the ability to trade cryptocurrencies and major indices and soon moit of the listed stocis on major equity markets. 4. Yet, as it stands the bulk of its business is focused on eross border puyments: including real estate and equipment. This is rather small compared to the largest players. QWestC nearly doubled ins revenue in the past two vears from 570 millons to $135 millions while its expenses went from 550 milion to $65 million. thwrencen averee fiass fectratabien froes of apgomita 7. Ttar uombary it whadr profealie afot only 7 pers tf eeesihe 1. Aecou it the furdins hosery of the comody I Chasedal trantwhina! buabera. Slate of the hindestry \begin{tabular}{l|r|} \hline Company & EBIT Margin \\ \hline Square Inc & 1,60% \\ \hline Information Technology & 3,40% \\ \hline Euronet Worldwide & 13,20% \\ \hline Paypal holding Inc & 16,30% \\ \hline Fidelity National Informa & 16,70% \\ \hline First Data Corporation & 18,20% \\ \hline Total System Services, Inc & 18,40% \\ \hline Global Payment Inc & 20,30% \\ \hline Alliance Data System Cor & 22,70% \\ \hline Mastercard inc & 52,40% \\ \hline Visa Inc & 62,90% \\ \hline \end{tabular}