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 of Business
MS in Finance
Committee Member 1
Malek Ben Abdellatif
Committee Member 2
Institutional Review Board (IRB) Approval
Not necessary for this item
Abou Elwafa, Y.
(2023).Fintech Companies Valuation Using Real Options: Fawry Empirical Study [Master's Thesis, the American University in Cairo]. AUC Knowledge Fountain.
Abou Elwafa, Yassmen. Fintech Companies Valuation Using Real Options: Fawry Empirical Study. 2023. American University in Cairo, Master's Thesis. AUC Knowledge Fountain.