... first trading day the market valued the company more than twice the IPO-value. Given additional assumptions and by analysing Netscape's income statement and balance sheet for Des 31-94 and Jun 30-95, we found that the company had to grow by 36-39% over the next 10 years to justify an offer price of $28. At this growth rate To Furthermore, we Based on the financial data available, Morgan Stanley came up with a price of $12 - $14 per share. This value was based on the future prospects of Netscape and the Internet industry in general. Furthermore, the analysis was built on the financial and operating information about Netscape and its competitors. Analysis The valuation process is basically comprised of two steps. (1) A 10-year forecast of the financial performance of Netscape. (2) Calculating a terminal value. To arrive at reasonable estimate of the value of Netscape, we need to make specific assumptions about ...

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