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Bumble
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==Discounted Cash Flow Valuation== Michele Sanguanini expects a revenue growth rate of 20% for the next five years to reflect the overall online dating market's growth and increase in market share. The growth rate will progressively slow down toward the risk-free rate in year 10. Michele Sanguanini believes the EBIT margin will reach 23%, the 8th percentile of the interactive media and services industry, in year 5. It's lower than its direct competitor, Match Group, but since Bumble has, and will have, a lower user base, the acquisition costs will be higher. To keep growing without losing market share to other dating apps, Bumble will need to keep investing in R&D and brand awareness. Michele Sanguanini expects it to reinvest with a marginal sales to invested capital ratio of 1. Michele Sanguanini estimated a cost of Capital of 7.29% for years 1 to 5, slowly adjusting to 7.36% on year 10. The increase is driven by the rise in the risk-free rate to 2% to reflect higher inflation.
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