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Re: stervc post# 76231

Friday, 01/26/2018 1:14:30 PM

Friday, January 26, 2018 1:14:30 PM

Post# of 226099
Edited: ANDI .19+ Fundamental Valuation to Consider…

Below is a post where I had indicated that the CEO of ANDI believes that the company will generate over $100 Million in Revenues/Sales:
https://investorshub.advfn.com/boards/read_msg.aspx?message_id=137040932

Within the ANDI update below, it was indicated that the Outstanding Shares (OS) for ANDI is 2.6 billion shares:
https://www.otcmarkets.com/stock/ANDI/news/ANDI---Utopya-Question-and-Answer?id=178721&b=y

Let’s presume that ANDI generates the $100,000,000 Revenues that they have projected as indicated within the link above and consider their OS to be 2.6 billion shares. Let’s presume a 25% Net Profit Margin. Now we can consider the valuation thoughts below to derive an Earnings Per Share (EPS) and then a share price valuation…

$100,000,000 ANDI Revenues x .25 Net Profit Margin = $25,000,000 Annual Net Income

Net Income ÷ Outstanding Shares (OS) = EPS

$25,000,000 Annual Net Income ÷ 2,600,000,000 Shares ANDI OS = .0096 EPS

Now we must multiply the EPS by a Price to Earnings (P/E) Ratio to get a Fundamental Valuation to consider for where ANDI could exist to 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:
http://investorshub.advfn.com/boards/read_msg.aspx?message_id=57154170
http://www.investopedia.com/terms/p/price-earningsratio.asp

ANDI is projected to generate $100,000,000 in Revenues while existing to trade within the Telecom Equipment Industry of which has a P/E Ratio of 114.62 within the link below:

As one can see, I could easily justify using the 114.62 PE Ratio. However, I will use 20 as a more conservative PE Ratio.

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. Now consider below…

EPS x P/E Ratio = ANDI Share Price Valuation

ANDI EPS = .0096
Telecom Equipment Industry Conservative P/E Ratio = 20

.0096 EPS x 20 P/E Ratio = $.192 ANDI Share Price Fundamental Valuation

One could easily use the Substitution Property to substitute the 20 PE Ratio with the "actual" indicated 114.62 PE Ratio and see that ANDI, even at .19 per share, could still be considered significantly undervalued.

HUGE FOR ANDI AND VERY IMPORTANT TO NOTE:

Mr. Loudon Owen - Prodigious Lawyer and Venture Capitalist on the ANDI TEAM:
https://investorshub.advfn.com/boards/read_msg.aspx?message_id=137983196

Darryl V. Green - Huge Previous GNC President on the ANDI TEAM:
https://investorshub.advfn.com/boards/read_msg.aspx?message_id=137040932

v/r
Sterling


Exit Strategy & Etiquette Thoughts for a Stock
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