CAVU Resources Inc (CAVR)

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$CAVR - UNDERVALUED STOCK ALERT!!! - Company has reported on their financial filing, for period ending 9/30/20 , 9 month earnings per share of .0019. Therefore, the assumption for TTM (Trailing Twelve Month) earnings for period ending 12/31/20 will be approximately .0025.

Note: CAVU CEO has communicated recently that the company is preparing to announce "ALL TIME RECORD" Quarter and Year results.

2/2/21 - Advisor Perspectives - From an article written by Jill Mislinski, titled "Is the Stock Market Cheap?" below is the latest update of the popular market valuation method using the most recent Standard and Poor's "as reported" earnings and earnings estimates and the index monthly average of daily closes for the past month.

TTM P/E ratio = 36.4
P/E10 ratio = 34.6 (10 year average - inflation adjusted earnings)


CAVR VALUATION ASSUMPTION:

.0025 (Projection of TTM earning per share for year ending 12/31/20) X TTM P/E ratio 36.4 = .091 per share

.0025 (Projection of TTM earnings per share for year ending 12/31/20) X P/E10 ratio
34.6 = .0865 per share

(CAVR - Closing pps at 4:00pm est on 2/12/21 = .0215)

Conclusion - Based on the above information, CAVU's stock price will need to ascend more then 400% to achieve fair market value with respect to both the TTM P/E ratio and the P/E10 ratio.

Rapid Growth Situations - Companies experiencing rapid growth are known to exhibit higher then average PE ratios. CAVU's performance results in 2020 vs 2019 appear to demonstrate a company experiencing rapid growth. Therefore, additional potential revenues and earnings from other CAVU divisions such as the Soku Social Platform, the Growing Together Educational Platform, and the Fitness Climb Machine have the potential of generating a period of exponential growth. During this condition PE ratios have been known to reach as high as 120/1. Such a rapid growth PE ratio applied to CAVU's current earnings per share would create a stock price vaule of .30 a share.

Disclaimer - All above assumptions pertaining to CAVU's valuation are only my opinion based on available information. I am currently a CAVU shareholder and will continue to hold shares of CAVU until at least fair market value of the stock price is achieved as demonstrated by the above calculations.

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