Tiger Global reportedly pours more than $1B into SoftBank, saying its shares are “undervalued”

Accuracy score :
97%

Tiger Global has poured more than $1 billion into SoftBank Group, according to the Financial Times. The newspaper reports that the firm told investors SoftBank’s shares are “meaningfully undervalued.” In response to a request for comment, SoftBank sent the same statement to TechCrunch as other media outlets: “We continue to believe the market significantly undervalues our stock and we welcome the support from a sophisticated institutional investor like Tiger Global.” MORE: https://techcrunch.com/2018/07/11/tiger-global-reportedly-pours-more-than-1b-into-softbank-saying-its-shares-are-undervalued/

Facts: Softbank's current market capital 87 Billion (Jul 13 2018) 

 

2. Debt: 148 Billion USD  

 

3. Cash: 30 billion USD 

 

4. Subsidiaries: , Arm Holdings, Fortress Investment Group, Boston Dynamics, and also owns stakes in Sprint (ca.85%), Alibaba (28.2%), Yahoo Japan (42%), Bright Star (87.1%), Uber (15%), Didi Chuxing (ca.20%), Ola (ca.30%), Grab, Renren (42.9%), InMobi (45%), Hike (25.8%), Snapdeal (ca.30%), Brain, Fanatics (ca.22%), Flipkart (ca.20%), Guardant Health, Improbable Worlds (ca.50%), Mapbox, Nauto, Nvidia (ca.5%), One97 Communications (ca.20%), Oravel Stays (42%), OSIsoft, PingAn Heath Cloud (7.41%), Plenty United, Roviant Sciences, Slack Technologies (ca.5%), Vir Biotechnology, WeWork (ca.22%), Zhongan Online P&C Insurance (5%), Compass (ca.22%), Auto1 (ca.20%), Wag (45%), Katerra (ca.28%)  

 

5. Arm Holdings - Purchased for 31 billion USD 

 

6. Alibaba - @ 30% outstanding 150 billion USD,  after taxes 100 billion USD. 

 

7. WeWorks , Didi(China) , Uber ,  - not public as of 2018. 

 

 

 

Analysis:  Due to the large debt and non-growth of its own company but its excessive ownership of other companies, it is being valued as an investment bank company. ARM -,  Although the company is valuable it produces very little profit but enormous I.P. value. As a wholly purchased company it can only be used for strategic purposes if there are any.  Alibaba - Taxed @ 30% $100 Billion worth. 

 

 

 

Conclusion: It'll be valued similar to Goldman Sachs (2018/Jul 81 Billion USD) 

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