Great insights by Prof. Aswath Damodaran on Paytm’s IPO.
As per his assumptions, the intrinsic value is Rs. 2190/share. The challenge for Paytm will be to improve their take rate on Gross Merchandise Value (GMV). Currently, it’s at a meagre 0.79% (March 2021). Paytm can be an interesting play for the next few years as the industry is expected to grow fivefold.