Valuing MomoLand DXB: a Refresher on Financial Analysis

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Abstract

MomoLand DXB is a neighbourhood food-truck business in Dubai’s Al Karama district, founded by an Iranian couple in the 1980s. Known for its authentic kebabs, wraps, and juices, the truck enjoys steady patronage and strong local recognition. As the founders plan retirement, they offer the business to Nirmal Uniyal, a restaurateur from Mumbai, for AED 1,000,000. Uniyal must assess whether this price is justified compared to the replacement cost (~AED 500,000) and future cash flow potential. Six months after acquisition, Uniyal receives an unsolicited AED 1.5 million offer: prompting a new question: Should he sell or hold? The case blends valuation frameworks with Time Value of Money (TVM) principles, ideal for revising core financial reasoning using a relatable entrepreneurial context. The case avoids accounting nuances of free cash flow (FCF) estimation to maintain a focus on financial analysis. This method is popular valuing many real assets (e.g. commercial real estate, hotels, etc.). While the case offers an effective, and engaging refresher on some fundamental concepts of financial analysis (returns, discounting, NPV, and IRR) this must be supplemented with other readings and exercises that also include more detailed discussions on annuities, annuity-due and capital budgeting metrics.

Additional Information

Product Type Exercise
Reference No. F&A0582EX
Title Valuing MomoLand DXB: a Refresher on Financial Analysis
Pages 4
Published on Dec 31, 2025
Year of Event 2022
Authors Das, Prashant;
Area Finance and Accounting (F&A)
Discipline Accounting, Finance, Innovation and Entrepreneurship, Strategic Management
Sector Transportation and Logistics
Learning Objective 1. Reinforce TVM principles through practical examples (returns, perpetuities, compounding). 2. Appreciate how brand equity, rather than tangible assets, drives value in micro-businesses. 3. Compare replacement cost, earnings multiples, and DCF-based valuation. 4. Apply Discounted Cash Flow (DCF) analysis to small enterprises. 5. Compute NPV and IRR in Excel and interpret results. 6. Explain how growth and discount rate assumptions drive valuation.
Keywords Small business, valuation, restaurant, TVM refresher, entrepreneur
Country UAE
City Dubai
Courses EEP, ePGD-ABA, AFP, FDP
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