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Re: stervc post# 4804

Thursday, 11/30/2017 3:35:05 AM

Thursday, November 30, 2017 3:35:05 AM

Post# of 32958
PTOP .474 Potential Fundamental Valuation…

The recently released PTOP news below explained how PTOP could conservatively generate $19,000,000 in Revenues per year:
https://investorshub.advfn.com/boards/read_msg.aspx?message_id=136521655
https://investorshub.advfn.com/boards/read_msg.aspx?message_id=136514693

With its operations, an over 80% Net Profit Margin is very conceivable. However, to remain conservative, as how the company remained conservative for deriving how they could generate the $19 Million in Revenues, I will use a 40% Net Profit Margin to derive what would be the amount of Net Income for PTOP. Consider below for deriving an Earnings Per Share (EPS)

$19,000,000 x .40 Net Profit Margin = $7,600,000 Net Income

The number for the Outstanding Shares (OS) was stated to be 479,000,000 Shares courtesy of bababooyah within the post below:
https://investorshub.advfn.com/boards/read_msg.aspx?message_id=136526021

I will use that number for the OS because it is higher than the numbers previously mentioned and it allows me to air on the side of caution.

Net Income ÷ Outstanding Shares (OS) = EPS
$7,600,000 Net Income ÷ 479,000,000 Shares (OS) = .0158 EPS

Now we must multiply the EPS by a Price to Earnings (P/E) Ratio to get a Fundamental Valuation to consider for where PTOP could exist to trade. The P/E Ratio is the variable that is multiplied by the EPS to get where a stock should fundamentally trade compared to the other stocks within its Industry or [bSector. 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:
http://investorshub.advfn.com/boards/read_msg.aspx?message_id=57154170
http://www.investopedia.com/terms/p/price-earningsratio.asp

Within the Bitcoin/Cryptocurrency Industry, there is no known official P/E Ratio, but I think given the new-found growth of the industry over any other industry within the market, I think we all could agree that using 30 would be deemed a fairly conservative number to use in my opinion.

Please understand, if one chooses to consider a lower number or a higher number, simply use the Substitution Property to replace such variable or any other variable to what you might choose to believe is a more fair variable to consider.

EPS x P/E Ratio = PTOP Potential Valuation

PTOP EPS = .0158
Bitcoin Industry P/E Ratio = 30

.0158 EPS x 30 P/E Ratio = .474 Per Share Potential Fundamental Valuation

v/r
Sterling


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