What Is Otter Payments Worth? A Comparables Analysis
Finance
easy40 min0 submissionsBCG
Scenario
Otter Payments (fintech, Southeast Asia) is preparing for a sale process. You have been asked to establish a valuation range using trading comparables.
The company. Revenue of $381 M, EBITDA margin of 26% (EBITDA of $99 M), revenue growth of 21%, and net debt of $73 M.
Trading comparables.
| Peer | EV/EBITDA | Revenue growth | EBITDA margin |
|---|---|---|---|
| Peer A — same sector, 3× larger | 11.2× | 7% | 22% |
| Peer B — adjacent sector, high growth | 9.6× | 29% | 11% |
| Peer C — same sector, declining | 6.2× | 3% | 14% |
The banker running the process has proposed simply averaging the three multiples.
Supporting data
target
- ebitda m
- 99
- revenue m
- 381
- net debt m
- 73
- ebitda margin pct
- 26
- revenue growth pct
- 21
comparables
| peer | ev ebitda | growth pct | margin pct |
|---|---|---|---|
| A | 11.2 | 7 | 22 |
| B | 9.6 | 29 | 11 |
| C | 6.2 | 3 | 14 |
Your task
Produce a valuation range. Provide:
- Analysis — which comparables you would use and why, and the resulting enterprise and equity values.
- Risks — where this methodology could mislead.
- Recommendation — your valuation range and the number you would take to the seller.
Critique the banker's proposed approach.
Ready to move forward? Up next: Ferro Industries: Two Projects, One BudgetNext question
How you'll be graded
100 points, 60% to pass.
- adjustments20
- peer selection25
- recommendation30
- multiple analysis25
Hint
Reveal suggested structure
- Screen the peers on growth, margin and risk — not sector label alone.
- Apply the defensible multiple range to EBITDA to get enterprise value.
- Bridge to equity value: EV − net debt.
- Adjust for size, growth differential and marketability.
- Cross-check with EV/Revenue.
- Present a range, and say where in it you would settle.