In 2019, a commercial real estate startup was not just a company; it was a phenomenon, anointed by venture capital's biggest names with a staggering $47 billion valuation. It was heralded as the future of work.
By 2023, it was bankrupt, its shares worth pennies.
This isn't just a story of one company's dramatic rise and fall. It's a gripping, real-world case study on two critical failures: the difference between Price and Value, and a deep misunderstanding of Sector Dynamics.
The market assigned a price based on a tech narrative, but the value was tied to the fundamentals of the commercial real estate sector. The rules of software (high-growth, asset-light, low marginal cost) were applied to a business of physical space (high-debt, high-opex, asset-heavy). This fundamental clash of sector dynamics is what made the $47 billion valuation a mirage.
In today's volatile market, this lesson is more urgent than ever. Is an AI company a software company or a service company? Is a food delivery platform a logistics business or a tech platform?
Applying the wrong framework leads to catastrophic errors.
- For a founder, it means chasing the wrong metrics and building an unsustainable business.
- For an executive, it means making poor M&A decisions or misallocating capital.
- For an investor, it's the difference between finding a hidden gem and buying into the hype.
Simply guessing or following the herd is no longer an option. A rigorous, disciplined approach to valuation, one that correctly identifies the industry and its rules, is the only way to build lasting wealth and avoid the next $47 billion mistake.
A Deeper Dive: Demystifying Value
To equip India's top professionals with this critical skill, The Economic Times presents an exclusive, intensive Masterclass on Value, Valuation & Sector Dynamics.
This isn't just academic theory. This is a practical, case-study-driven program designed to give you the financial acumen to navigate high-stakes decisions.
In this masterclass, you will explore:
- Modern valuation models beyond the classic DCF (Discounted Cash Flow).
- How sector-specific dynamics (e.g., tech vs. manufacturing vs. real estate) fundamentally alter a company's value.
- How to value early-stage, high-growth, and loss-making companies.
- The art of valuing intangible assets, brand, and intellectual property.
- Frameworks for navigating M&A, negotiations, and shareholder value.
If you are someone who wants to learn about long-term investing for making good returns in the long run, understanding the mechanics of valuation is no longer optional. It is your most powerful strategic tool.
We invite you to see the full agenda and the panel of experts who will be taking this Masterclass.
| Explore the Masterclass |
Sincerely,
The Economic Times