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Enterprise Value in the Digital Era, 28.11.2017

Last week, WiF had the chance to gather an incredible panel of professionals from the Italian Merchant/Investment Banking, Venture Capital and Private Equity Landscapes for the event “Enterprise Value in the Digital Era”, held at Bocconi University.

The event started off with a brief introduction of our association’s purpose and goals and how we believe that closing the gender gap not only relies on increasing female representation (i.e relative numbers) but fundamentally depends on increasing female involvement (i.e absolute numbers).

After that, Professor Andrea Beltratti (SDA Bocconi), Mauro Pretolani (Fondo Italiano di Investimento), Giovanni Tamburi (Tamburi Investment Partners) and Professor Maurizio Dallocchio (moderator, SDA Bocconi) began a discussion on the main differences between valuation today and traditional corporate valuation.

As we find ourselves in the era of Big Data and Information Technology, and, as the amount of data available increases exponentially, valuation of companies increases in complexity. The rules of the game are changing, but so is the game itself:  Who could have imagined that we would have a listed firm, Apple, with a market value exceeding the GDP of Hungary and Romania combined? Think about ‘unicorns’, some with average valuation of 70x sales. Think about the prospects of driverless cars and the impact this could have on the car manufacturing industry.

At this fastening pace of change, we cannot rely on one rigid valuation method anymore. Flexibility and innovation are essential features that investors should incorporate when valuating companies.

 

To hear the whole discussion of our panel, full recording of the event is available on our facebook page: https://www.facebook.com/bocconi.students.women.in.finance/videos/2004940679750971/

 

Interesting Reads:

Prezzi & Valori: L’Enterprise Value Nell’Era Digitale. Borsa, Private Equity, M&A, Premi, Sconti, Errori e Prospettive, by Tamburi Investment Partners S.P.A

No Ordinary Disruption: The Four Global Forces Breaking All the Trends, by Richard Dobbs, James Manyika, and Jonathan Woetzel