Star India, an unlisted company, is enjoying high valuations from financial services companies. While late last year Morgan Stanley valued Star at $11.2998 billion (around Rs 75,000 crore based on the value of Indian currency at that time), domestic brokerage firm Edelweiss Securities has in its recent report pegged the value of the wholly owned subsidiary of 21st Century Fox at a whopping $14.3 billion (Rs 97,011.2 crore based on Monday’s exchange rate). “As per our calculations (based on publicly available data), if Star gets listed on the bourses, its enterprise value (EV) could potentially be $14.3 billion and become India’s largest media company,” Edelweiss Securities said in its report. Edelweiss has valued Star on SOTP (sum of the parts) basis. Star’s entertainment business has been valued at Rs 63,360 crore (Rs 633.60 billion), Hotstar at Rs 10,245.2 crore (Rs 102.45 billion), and the sports business at Rs 18,000 crore (Rs 180 billion). “We expect Hotstar to garner revenues of over Rs 1,000 crore (Rs 10 billion) in FY20. Considering the high growth potential of the OTT platform, we valued Star’s Hotstar business at 15xEV/sales at FY20,” Edelweiss said.
Read more at: http://www.televisionpost.com/television/star-india-valued-by-edelweiss-at-14-3-bn/ | TelevisionPost.com
Read more at: http://www.televisionpost.com/television/star-india-valued-by-edelweiss-at-14-3-bn/ | TelevisionPost.com
