Impact Valuation of mGreen

Abstract

In recent decades, environmental protection has received increased attention, paving the way for socially responsible investment (SRI) and blended value accounting (BVA) to become increasingly favored by investors in assessing performance of businesses. Unlike traditional accounting tools, blended value accounting monetizes social impact alongside financial returns, which is suitable for valuation of social enterprises and enables investors to see a more thorough picture of both financial and social value of businesses. mGreen is a social enterprise in Vietnam that operates in the industry of waste management software. This company has contributed greatly to waste classification at source, recycling and raising environmental awareness in Vietnam. This paper conducts an impact valuation for mGreen through three main steps. First, I analyse the business model of mGreen and its industry. Second, I use cost-benefit analysis to measure the impact of mGreen through monetization. Third, I project its value in five years and make some recommendations for future activities of mGreen. Therefore, the paper concludes that mGreen has created a net blended value of 40,480.988 USD in 2021 and net present values of $253,391.05 in the upcoming 5 years. Its terminal value comes at $950,000.