Financial valuation of Abrantix AG
Abrantix AG is a renowned fintech company headquartered in Zurich, Switzerland. Because the company is privately held, its value is not determined by the market. The aim of this thesis is to conduct a comprehensive financial valuation for the company utilizing contemporary valuation methods.
Tim Walder, 2023
Bachelor Thesis, Abrantix AG
Betreuende Dozierende: Fabian Schmid
Keywords: Fintech, Valuation, DCF, Multiples
Considering the company’s distinct business units (Reconciliation, Payment Test Automation, and Payment Software Engineering), it is necessary to conduct a separate financial valuation of each unit. This study will provide valuable insights for decision-makers by addressing the defined research question: What is the value of Abrantix AG’s equity and what is the contribution of the individual business units’ distinct values to the overall company valuation?
To accomplish the objective of this study, two valuation methodologies were utilized: the discounted cashflow method and the multiple method, which is based on comparable companies. To consolidate market-specific information, a comprehensive selection of publications written by valuation industry experts has been compiled. In addition, the financial data of comparable companies were sourced from the Orbis database. In contrast, the company-specific information was collected through a combination of interviews with industry experts and the use of internal tools.
The findings of this thesis reveal that the valuation attributable to Reconciliation’s scalable business model (Software as a Service) accounts for the majority of the company’s value. While software solutions are also being developed in the test automation business, the unit is still affected by high material costs and a considerable portion of central costs. Therefore, this business contributes the smallest part to the total value. The core business, software engineering, has been generating constant revenue growth for years. This enables a valuation in which all applied methods yield a similar value. Ultimately, by adding the sum of the parts, a plausible entity and equity valuation of Abrantix AG is obtained. However, using the selected methods, the valuation is based on a number of assumptions. These must be continuously reassessed and adjusted accordingly in future valuations.
Studiengang: Business Administration International Management (Bachelor)
Fachbereich der Arbeit: