Hero to Xero, page-12

From their financial statements I broke the company into its regional sectors and then ARPU (average revenue er user) and ACPU ( average cost per user) and deducted marketing and other expenses. This gives NetProfit per user (NPPU). Then you multiply the number of users by the NPPU to get a total Net Profit for each business segment. I then proceeded to forecast you for the next 6 years and then discount the Net Profits back to time zero. Very similar approach to the way the investment banks have gone around valuing it, but I have made a more simplistic mode. In the end, the core driver of the business is the company's ability to maintain its new user growth rates.