U.S. asset manager Fidelity Investments has repriced its stake. In a February filing it marked down its position by half compared to August last year, implying a total valuation of $144 billion for Ant, the Wall Street Journal reportedThat looks generous. Take Ant’s stable digital payments business. If the unit resumes its pre-pandemic growth rate of 17% achieved in 2019, that implies revenue of 61 billion yuan this year, based on annualised 2020 figures. U.S.
boasts a 15% operating profit margin and an enterprise value 46 times forecast operating profit. On those assumptions, the payments arm is worth only $64 billion. Ant’s other business units could get smaller yet.
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