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Module 3: Market multiple valuation Catalog & Mail order houses industry. Industry Definition. Comprised of companies that sell products through “non-store” channels, including catalogs, online sales, television, and radio Products and services are delivered through the mail
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Module 3: Market multiple valuation Catalog & Mail order houses industry
Industry Definition Comprised of companies that sell products through “non-store” channels, including catalogs, online sales, television, and radio Products and services are delivered through the mail Companies in this industry typically have low amounts of inventory and commonly act as the “middle-man” in sales transactions Source: business.highbeam.com
eBay • Transaction based business model • Marketplace • eBay.com • StubHub.com and other small websites • Payments • PayPal • Bill Me Later • Marketing, Classifieds, Advertising Services • eBay Enterprises
Multiple Valuation EPAT NEA Book Value of Equity Sales Website Traffic
Our Unique Multiple • Importance on Internet Generated Sales • United States rankings for web traffic • Amazon: 5th • eBay: 8th • Apple: 29th • Barnes & Noble: 213th • Alexa Multiple • Reward for having higher web traffic Source: alexa.com
Recommendation/Confidence • Very little consistency for all 4 firms • Very volatile • No confidence • Financial statements do not compare well • Impossible to make recommendation • Hold