Baidu Valuation At Ipo Case

Baidu valuation at ipo case

Baidu valuation at ipo case

Product Description

Publication Date:February 05, 2009

Industry:Financial Services

Source:Stanford Graduate School of Business

Since its official launch in January 2000, Baidu.com, Inc.

(Baidu) quickly grew to become the leading Internet search engine in China.

IPO Valuation Model

After three rounds of private funding, Baidu registered to go public on the NASDAQ Stock Market (Ticker Symbol: BIDU) on August 5, 2005. This case can be used for at least three types of courses: business valuation, entrepreneurship in emerging markets, or doing business in China.

Baidu valuation at ipo case

When used for a business valuation or corporate finance course, the case highlights issues involved in the valuation of early-stage companies in emerging growth industries and economies. When used for an entrepreneurship course, the case highlights the opportunities and challenges of starting and growing ventures in emerging markets; it also illustrates how a start-up company can take an existing entrepreneurial idea and proven business model from another country and successfully adapt it to the home market.

Three steps in this successful adaptation are: (1) leveraging its local knowledge and expertise, (2) creating a unique competitive advantage for the venture, and (3) creating an entry barrier for its competitors.

Baidu valuation at ipo case

In a course on doing business in China, the case highlights the strategies for business success in China and the role of culture, government, economy, legal and financial systems, and consumer market in shaping these strategies.

Product #: A197

Pages:28

Related Topics:Accounting, Internet, Technology, IPO, Emerging markets, Valuation, Cash flow, Financial statements,