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New .42 OTTV “Potential” Valuation Per 10-Q...

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stervc Member Level  Saturday, 07/22/17 05:54:23 PM
Re: stervc post# 34449
Post # of 88150 
New .42 OTTV “Potential” Valuation Per 10-Q...

Below is the new OTTV valuation, with using the Substitution Property from the valuation post below, based on their recently filed 10-Q that should now get them back to being current too:

Per the recently filed OTTV 10-Q... their Outstanding Shares (OS) is 3,046,810,436 shares as of July 13, 2017:

With reading, how the .643 OTTV valuation was derived from a 2,000,000,000 OS, below is the potential valuation to consider from it's now confirmed OS of 3,046,810,436 shares:

OTTV .42 Per Share Valuation Consideration…

With OTTV (Viva Entertainment Group, Inc.), it is important to first understand how the Revenues are going to be generated. OTTV will charge roughly $35.00 per month per subscriber for a subscription to their television services that they deliver using the Internet:

I’m going to consider that OTTV will have a very conservative per month subscriber base of only 500,000 per month at a subscription price of $35.00 per month. This will warrant Revenues in the amount indicated below:

$35.00 Monthly Subscription x 500,000 Subscribers = $17,500,000 Monthly Revenues

$17,500,000 Monthly Revenues x 12 Months = $210,000,000 Annual Revenues

For inquiring minds, before reading any further, to better understand OTTV and to understand why using 500,000 subscribers to derive the .42 per share fundamental valuation to be extremely conservative, I think these posts below from powerbattles and Lolaspike should be read and understood by all:

From the Revenues, we must derive the Net Profit Margin. OTTV will exist to trade within the Services Sector within the Cable TV (CATV) Industry. The Net Profit Margin for stocks trading within the CATV Industry is 11.68% which can be confirmed from the link below:

I believe the Net Profit margin is going to prove to be higher for OTTV, but for now we’ll stick with the 11.68% Net Profit Margin since it is verifiable to derive the Net Income amount for OTTV to be as indicated below:

$210,000,000 Annual Revenues x .1168 = $24,528,000 Net Income

To derive the fundamental valuation for OTTV, we must divide the Net Income by the Outstanding Shares (OS) to derive an Earnings Per Share (EPS). The 10-Q recently indicated that the OS for OTTV is 3,046,810,436 shares:

So, presume below:

Net Income ÷ Outstanding Shares (OS) = EPS
$24,528,000 Net Income ÷ 3,046,810,436 (OS) = .008 EPS

Now we must multiply the EPS by the P/E Ratio to get a Fundamental Valuation for OTTV.

The P/E Ratio is the variable that is multiplied by the Earnings Per Share (EPS) to get where a stock should fundamentally trade compared to the other stocks within its Industry or Sector. The links below should help to better understand the P/E Ratio logic as being the growth rate to help assess the fundamental valuation of a stock:

OTTV will exist to trade within the Services Sector within the Cable TV (CATV) Industry of which below confirms a Price to Earnings (P/E) Ratio of 52.74 within the link below:

EPS x P/E Ratio = OTTV Share Price Valuation
.008 EPS x 52.74 P/E Ratio = .42 per share

Please also understand, use the Substitution Property to substitute out any variable that might be learned of to have changed to derive a new conclusion for a valuation. Example: If you think that the P/E Ratio is 2 time less or even 3 times less, then make the substitution and still you will see that OTTV could very easily be worth trading in the .14 tp .21 per share ranges.

This post is not the gospel and being flexible is a good quality to have. This valuation post is something to consider using as a framework to at least have something structurally organized in place to be able to asses an OTTV fundamental valuation to at least consider as a starting point.

Bottom Line: If there is a variable that is believed to be far from conservative, make the change to substitute the variable, apply it, and you will still see that OTTV is still significantly undervalued event these current levels.


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