Abstract

This thesis presents an improved valuation approach for Fintech companies, which are high-growth technology-based firms. We first identify the shortcomings of traditional valuation methods in valuing high-growth technology firms. Then, an alternative valuation technique based on real options theory is discussed to value fintech companies. The relevance and validity of using real options valuation to value fintech firms are also discussed. We propose a new flexible framework for valuing fintech companies by extending the Schwartz-Moon (2001) model to include various types of real options. To validate the practical application of the Extended Schwartz-Moon model, we conduct an empirical study to value Fawry for Banking Technology and Electronic Payment (S.A.E), which is a premier fintech company in Egypt. This thesis contributes to the field of valuing fintech companies both academically and practically. By offering an enhanced valuation methodology for fintech companies as a high-growth technology-based firm, we provide a valuable tool for investors, analysts, and managers to make more informed decisions when valuing such companies.

School

School of Business

Department

Management Department

Degree Name

MS in Finance

Graduation Date

Summer 6-15-2023

Submission Date

6-12-2023

First Advisor

Rim Cherif

Second Advisor

Ayman Ismail

Committee Member 1

Malek Ben Abdellatif

Committee Member 2

Tarek Eldomiaty

Extent

62 p.

Document Type

Master's Thesis

Institutional Review Board (IRB) Approval

Not necessary for this item

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