The foreign brokerage sees recent developments significantly reducing the probability of Paytm getting a banking licence to lend.
"Globally, Fintechs have corrected sharply. When we initiated on PayTM, FinTechs globally traded at 0.3x-0.5x PSg (price to sales growth ratio). However, multiples have now declined to 0.07x-0.35x. Our benchmark valuation for PayTM has been the valuation of global FinTechs. As a result, we now value it at 0.2x PSg vs the 0.35x PSg used earlier, thereby arriving at a fair price of Rs 450," Macquarie said in a note.