Let’s assume that the news is true and the deal happens. Not sure if 4B valuation is pre or post 1B investment. Assuming 4B is post 1B investment, it means current valuation of financial service is 3B. As per June investor presentation http://www.piramal.com/assets/pdf/financial_investor_presentations/PEL-Investor-Presentation-june.pdf
Financial service is 54% of revenue and 60% of capital employed. We can value other Piramal business heads separately as per our own valuation method. Considering that the current market cap is roughly 5.4B, I think SoftBank is paying a fair price. It’s a positive news considering the current market sentiment. Views invited!
Disc: PEL is 10% of my portfolio