Market Sizing

Hi,

indeed, I would suggest you come up with your own thoughts first. Nevertheless, I would suggest you start by asking yourself which valuation methodologies make sense in this context. Some first thoughts on this include:

„Discounted“ Cash Flow

• Revenues – Ask yourself what revenue streams a cow could produce over its lifetime. Be creative! For example:
  • Milk production
  • Riding (rent income)
  • Meat production (at end of life)
• Costs
  • investment costs
  • maintenance cost, costs of raising the cow
  • Rent / housing costs if applicable
• Discounted profits
  • Then calculate the yearly profits of owning the cow and discount them back to the present to get the net present value

Replacement value

• What does it cost to buy a cow?

Precedent transactions

• For which price did comparable cows sell in the recent past?

„Liquidation“ value

• How much money could you make if you sell the component parts of the cow, i.e. the meat?

Hope this helps :)

Best regards

Hi!

You'll really get the best out of this exercise if you try it yourself. Why don't you post what you're thinking and we can help?

Hint: What's the lifecycle of a cow?

Hi there,

Happy to improve your answer. Would you want to try your best first?

Best

Serhat