Somehow my question is not understood. I’m just asking about how to value a wealth management company…not how to value Nuvama or implying if it’s overvalued.
What I have found so far is that most common multiples used when valuing wealth management firms are EV to EBITDA, EV to AUM, and EV to revenue multiples.
That said I have a specific question about Nuavama.
Their asset under management is some 70000 cores but 12 months trailing annual revenue is 2800 which translates into roughly 4% fee. I believe that’s way too high for a wealth management firm. Given that a big chunk of their revenue is concentrated in wealth management, what could be reason for such high fee? Is it sustainable?
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