The Calculation of Market Capitalization of Enterprises Based on Discounted Cash Flow Method

An Application on Razer Inc.

DOI

10.2991/aebmr.k.220603.037How to use a DOI?

Keywords

Discounted cash flow; Valuation; Razer; Technology

Abstract

The gaming hardware industry is believed to be positively influenced by the pandemic, the demand for valuation of those enterprises has also increased. This paper aims to give an assessment and valuation of Razer Inc. while also studying how the company and the whole gaming hardware industry have performed over years. The market value of Razer Inc. is calculated by the discounted cash flow model. The second section discusses the business trend of the whole gaming hardware industry while the third studies several business indexes and shows how the company has performed during the pandemic period, from 2019 to the end of the first interim of 2021. The last section discusses the DCF model in detail. The capital asset pricing model is also used when estimating the weighted average cost of capital. Based on the model, the estimated market capitalization of Razer by the end of 2020 is $3.196 billion.

Copyright

© 2022 The Authors. Published by Atlantis Press International B.V.

Open Access

This is an open access article distributed under the CC BY-NC 4.0 license.

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TY  - CONF
AU  - Kerong Wang
PY  - 2022
DA  - 2022/07/01
TI  - The Calculation of Market Capitalization of Enterprises Based on Discounted Cash Flow Method
BT  - Proceedings of the 2022 2nd International Conference on Enterprise Management and Economic Development (ICEMED 2022)
PB  - Atlantis Press
SP  - 213
EP  - 220
SN  - 2352-5428
UR  - https://doi.org/10.2991/aebmr.k.220603.037
DO  - 10.2991/aebmr.k.220603.037
ID  - Wang2022
ER  -