EcoloClean Industries (ECCI)

[stervc]

ECCI .12 per share Valuation Consideration…

This ECCI valuation consideration was derived in effort to try to determine a fair valuation for ECCI from some of the variables mentioned in the post below presented to us by Tkcomputer9999:
http://investorshub.advfn.com/boards/read_msg.asp?message_id=28927851

ECCI Presumed Variables to Consider:
** 5 units running per day
** ECCI net $2,000 per day per unit
** Worse case scenario Outstanding Shares (OS) amount of 350,000,000 shares

5 x $2,000 = $10,000 per day

Understand that…

Revenues – Expenses = Net Income.

Net Income ÷ Outstanding Shares (OS) = Earnings Per Share (EPS)

This $10,000 per day we will consider as “Net Income” since we have already taken any kind of Expenses under consideration. Consider the monthly calculations to derive an annual calculation below:

$10,000 per day x 30 days = $300,000 Income per month

$300,000 x 12 months = $3,600,000 Income per year

From above…

Net Income ÷ OS = EPS

$3,600,000 ÷ 350,000,000 shares = EPS
.0102 = EPS

Since we are not quite sure just yet what Sector or Industry ECCI would trade under, it is a little difficult to determine a finite PE Ratio to use as its growth multiple to multiply with the EPS to determine its fair trading price. Because of this, it is generally accepted to use 12 as a conservative PE Ratio which would then give us the ECCI trading price of where ECCI could potentially be trading below:

12 Conservative PE Ratio x .0102 EPS = .1224 per share

This means that given the variables that were mentioned as a consideration were true, ECCI would logically and fundamentally be worth somewhere in the area of .1224 per share.

This also means that the .1224 per share represents per increments of 5 units. So…

.1224 x 2 units of 5 = .2448 per share

.1224 x 3 units of 5 = .3672 per share

Again, this is considering that the variables that were used to derived the calculations for these figures are released as such.

v/r
Sterling