You can’t really value a aggressively growing company with an existing metric. If you do, it always looks like overvalued.
That is why you look outside the company and how it impacts future of the company(revenues, sales etc)
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Somehow my question is not understood. I’m just asking about how to value a wealth management company…not how to value Nuvama or implying if it’s overvalued.
What I have found so far is that most common multiples used when valuing wealth management firms are EV to EBITDA, EV to AUM, and EV to revenue multiples.
That said I have a specific question about Nuavama.
Their asset under management is some 70000 cores but 12 months trailing annual revenue is 2800 which translates into roughly 4% fee. I believe that’s way too high for a wealth management firm. Given that a big chunk of their revenue is concentrated in wealth management, what could be reason for such high fee? Is it sustainable?
₹2,41,837 Cr Client assets as of Dec 23 for Wealth Management.
I think this might help
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I guess you have not even had a look at presentation or any one con call of the company… If you watch above video you will get quite an insight about this business, and if your seriously thinking to invest then irrespective of your question you must watch the video.
Jio + BlackRock entry into this space,
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