Customer-based valuation of digital subscription businesses using publicly available data
Motivated by the rise of subscription businesses in today's digital economy, this study highlights the advantages and limitations of valuing digital subscription firms using publicly available data. In recent years, new valuation frameworks that capture the specific characteristics of subscript...
| Autor: | |
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| Tipo de recurso: | tesis de maestría |
| Fecha de publicación: | 2023 |
| País: | España |
| Institución: | Universitat Politècnica de Catalunya (UPC) |
| Repositorio: | UPCommons. Portal del coneixement obert de la UPC |
| Idioma: | inglés |
| OAI Identifier: | oai:upcommons.upc.edu:2117/412387 |
| Acceso en línea: | https://hdl.handle.net/2117/412387 |
| Access Level: | acceso abierto |
| Palabra clave: | Economics New business enterprises Economia Empreses--Creació Àrees temàtiques de la UPC::Economia i organització d'empreses |
| Sumario: | Motivated by the rise of subscription businesses in today's digital economy, this study highlights the advantages and limitations of valuing digital subscription firms using publicly available data. In recent years, new valuation frameworks that capture the specific characteristics of subscription firms have emerged under the name of customer- based corporate valuation. This approach derives the overall value of a subscription firm from the value generated by its users which is calculated using customer metrics. When this approach is applied using public data, the main obstacle often encountered is the lack of standardization in the disclosure of user-related data in public company filings. The same metric can have varying definitions and interpretations across different businesses, adding complexity to the valuation process. This inconsistency often poses challenges for analysts, investors, and stakeholders who seek to understand the value of these businesses. To address this, our research establishes a standard set of customer metric definitions for a sample of nine digital subscription firms. The result is a unified valuation model for subscription businesses that accounts for the limitations in public data availability and the challenges they present to valuation. |
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