Before reading through the below fundamental valuation for AVVH, please understand that it is based on speculative thoughts from some key facts and presumptions that could come out later to be different. If later any of the variables used to derive the valuation change, please use the Substitution Property accordingly to replace such variable to derive at an updated valuation.
Important too to note, this valuation is predicated upon all or some significant portion of Gold Quest Group coming into AVVH. Let’s go over some of the key facts and presumptions that will help us to derive this valuation consideration:
AVVH/Gold Quest Group (GQG) Key Facts & Presumptions Presumption ** AVVH completes the acquisition of Gold Quest Group: https://investorshub.advfn.com/boards/read_msg.aspx?message_id=163576227 Fact ** Gold Quest Group (GQG) lends over $500 Million Annually: https://investorshub.advfn.com/boards/read_msg.aspx?message_id=163608153 Fact ** AVVH will trade within the Brokerage & Investment Banking Industry with a Current P/E Ratio of 21.14 and a Trailing P/E Ratio of 82.20: http://pages.stern.nyu.edu/~adamodar/New_Home_Page/datafile/pedata.html https://www.goldquestgroup.com/about-us/ Presumption ** Maybe only 80% or 90% of GQG will come into AVVH. Presumption ** Since GQG lends over $500M Annually, fair to expect 20% of that or over $100 Million in Revenues for what should come into AVVH. Presumption ** Since much of what is done is automated, there is a 40% Net Profit Margin. Presumption ** Preferred shares will be used to acquire GQG so OS remains the same. Fact ** OS after 1 billion shares reduction will be in the area of 910,000,000 shares: https://www.otcmarkets.com/stock/AVVH/security Fact ** Formula used to derive Fundamental Valuation: Revenues x Net Profit Margin = Net Income Net Income ÷ Outstanding Shares (OS) = Earnings Per Share (EPS) EPS x P/E Ratio = Per Share Price Valuation
AVVH Valuation Consideration
$100,000,000 Revenues x .40 Net Profit Margin = $40,000,000 Net Income
$40,000,000 Net Income ÷ 910,000,000 OS = .0439 EPS
In summary, this means that if Gold Quest Group comes into AVVH and brings in the valuation that I believe as I had indicated above through logical deduction, AVVH should fundamentally be worth somewhere in the area of .92 per share to $3.61 per share or higher depending on how their $30.9 Million Tax NOL will be applied. Again, important to note, use the Substitution Property to substitute out any variable that later is known to be the actual value or variable.
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