Case Study Analysis and Solutions

Case ID: 112006

Abstract:
Case Solution & Analysis for LinkedIn Corporation by Francois Brochet, James Weber
The purpose of this case is to help students critically evaluate the market value of LinkedIn's stock following its recent IPO. In the context of strong investor appetite for social media companies, LinkedIn is the lamp bearer among U.S. companies in that industry that are considering tapping into public markets. The case can serve to illustrate the challenges of valuing an early-stage high-growth company with a great deal of uncertainty about fundamental value and how quoted prices might reflect expectations that are hard to justify. Regardless of which valuation method is employed (e.g., residual income, discounted cash flow, multiples), the case provides a platform (i) to map the firm's key success and risk factors into forecasts and estimates for its future performance and cost of capital, and (ii) to critically assess the implied assumptions underlying the market's expectations.

Keywords:
IPO, Social media, Valuation, LinkedIn Corporation Case Solution

Click Here to place your order

OR

Contact us directly at ordercasesolutions@gmail.com if you want to solve the above case.