Today’s business world is witnessing a big revolution in doing business. Now the commerce has a prefix ‘e’ and the market is shifting onto the clouds. With introduction of e-commerce and government inclination towards digital economy, behavioral shift toward internet based transaction has gained momentum. E-commerce or internet based business are now a part of mainstream commerce. The changing way of doing business necessitates adaptation in the way a business is being valued. There are various valuation methods namely Asset based, Earning based and Cash flow based which were used and are also relevant to internet based business, however, consideration required towards new emerging operating indicators. Through this case study we will try to evaluate the popular valuation methods for its suitability to E-commerce based industry where many newly introduced operating indicators such as Gross Merchandise Value (GMV), Customer monetization rate, customer base measuring units Mobile MAUs has impacts on business valuation.  

Valuation; Going concern; PE ratio; EPS; Dividend payout; Free cash flow; Online retail; Risk; GMV; Mobile MAUs