BU527 Lecture Notes - Lecture 2: Partygaming, Profit Margin, Online Poker
Document Summary
Questions for students: the initial offer price of partygaming"s ordinary shares was 116 pence per share. 781,629,050 shares were up for sale: using your own assumptions, estimate the value of partygaming"s ordinary shares at the time of the ipo. There are numerous risks associated with this company that affect the value. To being, there are legal risks, technological risks, taxation risks, intellectual property risks and risks of new entrants. This includes the difficulty of the us not allowing gaming due to legal issues. These risks are very difficult to quantify and make it difficult to take into account with the valuation. According to analysts, this market will see growth in the short term, which is also an important aspect to consider when valuating this company. Using the results from the first quarter in 2005, the sales estimate can be completed. The average active daily poker players were 121, 570. Each of these players yield . 6 per day.
