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Revised ICNB .73+ Fundamental Valuation by stervc

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cjstocksup Member Level  Thursday, 03/02/17 12:26:51 PM
Re: cjstocksup post# 88642
Post # of 165013 
Revised ICNB .73+ Fundamental Valuation by stervc

Previously within the link below, I had posted that the recent ICNB acquisition of the Bellissima Prosecco made ICNB worth .19+ per share through ”logical” deduction:

The valuation was derived through the consideration of the max capacity of cases sold per month to be 30,000 cases:

The company is positioned with current monthly allocated capacity of 30,000 cases which can be increased based on demand…

However, based on the logic that was delivered within your post below, it is fair to consider that the max capacity of cases to be sold per month will be 50,000 cases:

What I will do is use the ”Substitution Property” to substitute out 30,000 cases per month with 50,000 cases per month and I will substitute out the Price to Earnings (P/E) Ratio I used for the Beverage (Alcoholic) Industry to be what is listed from the ”official” link you sent me below indicating a P/E Ratio of 45.06 to use for the Beverage (Alcoholic) Industry:


Before reading any further regarding the upcoming fundamental valuation for ICNB, read through the links below to better understand the logic that could be considered for the P/E Ratio:

Now let’s redefine the ”Key Variables” below:

Key Variables to Note
** $19.99 Per Bottle
** 6 Bottles Per Case
** 50,000 Cases Sold Per Month
** Outstanding Shares (OS) = 814,790,609 shares
** Net Profit Margin for the Beverage (Alcoholic) Industry is 18.60% (.1860) As of 1-Feb-2017
** Recent P/E Ratio of 45.06 for the Beverage (Alcoholic/ Wineries & Distillers) Industry

I must reiterate… this now means that the below valuation will lean more towards being an ”actual valuation” versus just being a ”speculative valuation” since ICNB is well beyond the Research and Development phase and is currently within the Marketing, Distribution, and Sales phases.

For inquiring minds, if 18.60% equals the Net Profit Margin, then this means that 100% minus 18.60% equals the Net Expense Margin which equates to 81.40% as the Net Expense Margin.
(100% – 18.60% = 81.40%)

Fair Presumption: What this means is that any kind of expenses or fees that anyone chooses to come up with that is believe to be left out, for the purpose of this post, will be considered calculated and inclusive to be accounted for as part of the 81.40% Net Expense Margin.

Let’s derive...

** 50,000 Cases Per Month x 6 Bottle Per Case = 300,000 Bottles

* 300,000 Bottles Per Month x $19.99 Per Bottle = $5,997,000 Revenues Per Month

** $5,997,000 Revenues Per Month x 12 Months = $71,964,000 Revenues Per Year

** $71,964,000 Revenues Per Year x .1860 Net Profit Margin = $13,385,304 Net Income

Formula to use to derive the Earnings Per Share (EPS)…

Net Income ÷ Outstanding Shares (OS) = EPS
$13,385,304 Net Income ÷ 814,790,609 shares = .0164 EPS

Formula to use to derive the ICNB Share Price Valuation…

EPS x P/E Ratio = ICNB Share Price Valuation

.0164 EPS x 45.06 P/E Ratio = .738 ICNB Share Price Valuation

This means that it is fair to presume that ICNB could be fundamentally trading in the .73+ per share range based on their acquisition of Bellissima Prosecco and considering the max capacity of 50,000 cases per month. As more news is released by the company to confirm even greater growth that is upon the horizon, I believe the market will begin to see this and more as ICNB still is very much undervalued in my opinion.

Stay tuned… much much more is coming in my opinion!


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