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Re: Traderfan post# 708

Monday, 09/21/2020 1:41:03 PM

Monday, September 21, 2020 1:41:03 PM

Post# of 9297
Clarification - post split price

The Present Value of the average of three years PATis valued as the average of
(a) 12 times to the ROI
(b) 17 times PE
(c) 6.67 times EBITDAR and
(d) 5.0 times the Operating Revenue

This is discounted by 14.695 PV discounting factor ...that is arrived as follows:
Current Prime Lending Rate / (1-Risk Adjustment Factor)
which is 12.155 / (1-17.32%)

17.32% risk adjustment is an aggregate of
(a) 3.23% Country Risk Premium
(b) 8.46% Corporate Risk Adjustment
(c) 6.90% - 1.30% Inflation Rate Difference

The table shows average Enterprise Value @ 5.04 Billion which means $10 per share post split.

Now, for the investor group that is investing @$2.00 per share, it is certainly a welcome opportunity as the group progresses into First, Second and Third Year progressive financials that is estimated to peg around $10 post split, subject to the facts that working progress is remaining as predicted. That is a 5x for the investor.

These statements may only be taken as clarification notes and readers must follow prudence and caution while investing into it.

Laxmi Prasad