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Market Sizing

Hi everybody,

I encounered a case that asked me to quantify the value of a cow. How would you do it ?

Thanks in advance !

Hi everybody,

I encounered a case that asked me to quantify the value of a cow. How would you do it ?

Thanks in advance !

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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!

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,

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,

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

(edited)

Hi there,

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

Best

Serhat

Hi there,

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

Best

Serhat

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