Pacific Ventures Group Inc (PACV)

[ChaseDog31]

Hmmm..

Well i like to go conservative on my valuations.

There are a number of different ways to do this. The three easiest are total asset valuation, multiple of profits after all expenses (say 15 times), and multiple of revenues (say 2 times).

The first two don't apply to PACV because:

Total asset valuation is zero because the liabilities exceed the assets.

And multiple of profits can't be used because the company is not yet profitable.

Let's look at the third, 2 X revenues:

Currently the company has $2.5 million in sales through 6/30/19 but is growing nicely. So let's conservatively say they will end the year at $5.3 million. Multiply that by 2 and you get 10.6 million.

Staying conservative i will project that our outstanding is around 500 million shares. It could be 400 million or less. But let's stay very conservative, recognizing we might get a nice surprise once the outstanding is updated. For me anything below 400 million would be fabulous. It is still a good, low share structure.

So 10.6 million / 500 million = .0212

So that would be my conservative estimate of where we should be right now with no $30 million asset purchase deal included. If you feel my multiple of 2 times revenue is too low or my 500 mil share prediction too high, then adjust your price valuation accordingly.

The point is even based on my very conservative calculation PACV is horribly undervalued.

Now let's add in $30 million in annual revenue if Shannon can close the deal. Add in the current $5.3 million and you get $35.3 million in revenue going forward. Obviously we won't close 2019 with that amount but we will be on pace.

35.3 million X 2 = 70.6 million
70.6 million / 500 million = .1412

So it is easy to see that this asset purchase/reverse merger would increase the current fair value of PACV (.0212) by about 7 times.

If Shannon drops the 8K announcing the deal is done, this stock should conservatively be at 14 cents. I know of no other more conservative way to value it. 14 cents is rock bottom valuation, which is why so many of us are jacked about the near future.