With GCash increasing its user base (up 21 percent to 40 million as of April 2021 from 33 million as of end-2020) and gross transactions expected to double to P2 trillion by the end of this year (from P1 trillion in 2020), COL Financial is projecting Globe Telecom’s popular wallet app to increase its valuation by between 50 percent and 100 percent from $1 billion in January 2021 (when it raised $175 million from New York-based Bow Wave Capital management).
COL said that as the number of GCash users and use cases continue to increase, it estimated that the app’s conservative valuations could balloon to $1.5 billion to $2 billion.
At its current share price of P1,920/sh, GLO has a market capitalization of P262.56 billion.
COL said that based on a $1 billion, GLO’s stake in the app was worth approximately P20 billion, or around eight percent of GLO’s current market cap.
“Once GCash finally lists in the stock market, GLO’s stake in GCash would be worth P30 billion to P40 billion by then, representing approximately 15 percent of GLO’s current market cap,” said COL.