FinTech valuation: developing a structured approach to growth estimation and regulatory risk integration in DCF models

Erdmann, Lennart

http://hdl.handle.net/10362/203697

Utilize este identificador para referenciar este registo.

Nome:	Descrição:	Tamanho:	Formato:
SPRING25_58193_Jan_Erdmann.pdf		778.48 KB	Adobe PDF	Ver/Abrir

Contacte-nos

Autores

Erdmann, Lennart

Orientador(es)

Habib, Nadim

Resumo(s)

This paper proposes an enhanced DCF valuation framework tailored to FinTech firms by addressing two key limitations: unrealistic growth assumptions and the exclusion of regulatory risk. It introduces an empirically fitted S-curve to capture nonlinear growth and a Regulatory Risk Premium (RRP) scorecard to adjust the cost of equity based on jurisdiction-specific regulation. Applied to Klarna, Revolut, and Nexi, the model improves valuation accuracy and realism. Results show that traditional models can significantly misprice FinTechs, especially in early-stage or high-risk regulatory environments. The framework offers a transparent, data-driven approach for valuing innovation-driven financial firms.

Palavras-chave

Valuation Corporate finance Fintech Regulation CEMS MIM

URI

http://hdl.handle.net/10362/203697

Coleções

NSBE - CEMS MIM Dissertations

Licença CC

cclicense-by

Ver registo completo