There is little to go on as far multiples analysis is concerned. There are few true comparables to Netscape, and Netscape had negative earnings and operating cash flows at the time of the offering. Exhibit 1N shows cash flows on a set of assumptions. Netscape must grow at an annual rate of approximately 55% for the next ten consecutive years if a $28 price is to be justified, assuming a 12% discount rate...
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There is little to go on as far multiples analysis is concerned. There are few true comparables to Netscape, and Netscape had negative earnings and operating cash flows at the time of the offering. Exhibit 1N shows cash flows on a set of assumptions. Netscape must grow at an annual rate of approximately 55% for the next ten consecutive years if a $28 price is to be justified, assuming a 12% discount rate...
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Title	Pages / Words	Save
Netscape's IPO Other assumptions were made on capital expenditures, depreciation, operating expenses, research and development (R&D) expenses, and cost of revenues to be similar to Microsoft as a proxy...	12 / 3170
Netscape IPO Other assumptions were made on capital expenditures, depreciation, operating expenses, research and development (R&D) expenses, and cost of revenues to be similar to Microsoft as a proxy...	12 / 3178
Crystal Ball As usual, we have isolated the parameters in one location and have grouped the calculations separately. The model includes actual values for 1995 in column B and builds the forecasts for the years 1996—2005 using recursive formulas along with growth rates and ratios given in the Assumptions section...	2 / 362
Netscape There is little to go on as far multiples analysis is concerned. There are few true comparables to Netscape, and Netscape had negative earnings and operating cash flows at the time of the offering...	2 / 525