Abstract
The research has been conducted to give an insight into the intrinsic valuation of E-commerce stocks. The valuation is done with the aid of DCF (Discounted Cash Flows) model. Intrinsic value of stock reflects the real value of stock, unlike the market value which is not merely based on financial performance of the company but on many other factors. It aims at establishing comparison between market values, intrinsic values and the predicted future values using Monte Carlo simulation of 10 listed E-commerce companies, which includes foreign and Indian companies. The comparison also reveals the deviation between current market prices of stocks and the predicted prices using one of the most reliable methods. The result of this comparison influences the investor’s decision regarding the purchase of a particular stock. Keywords: E-commerce, Intrinsic Value, Discounted Cash Flow Model, Investor.
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