Lottalead, important with this NHMD .515 Valuation Per Share...
Some might feel that we should wait before talking about any valuation for NHMD until they officially confirm that they do have the $268 Million Sugar Contract and the $300 Million Chicken Paw Contract totaling $568 Million in contracts. I disagree. Heck, they filed such within their 8-Ks with the SEC. This isn't us talking, it's the company talking. While some feel as though they have no reason to believe... I feel as though we have no reason to doubt what they truly have. In my opinion, I think it's fair to help investors to have an idea for where to gage where NHMD should fundamentally trade if they confirm that they not only have the contracts, but have the necessary funding to support those contracts. These confirmations could be coming sooner than what some might expect so I think it's fair to be prepared to have an idea. Important to note, I'm not telling anybody to buy NHMD because of this post. I'm simply saying to use this post as a tool to help you gage if NHMD is worth the risk considering if they do what they say they are going to do or have what they are saying they actually have.
Thanks for posting this because nobody did take me up on what I was asking them to do. Simply use the Substitution Property to substitute out any variable that changed to derive a new per share value for NHMD. With your post below, I see that you substituted out the old Outstanding Shares (OS) for the new OS to be 3,163,024,616 shares as of 10/27/2023: https://www.otcmarkets.com/stock/NHMD/security
I'm going to guess and say that to close the deal they are going to have to make sure both sides get some shares to have some skin in the game because both sides are not doing this deal for free. I'm going to presume that the updated OS is going to eventually be in the area of 3.5 billion shares for the OS. It could be a number more or a number less. I'm really not sure, but my point is to show how it doesn't really matter what it is as it should be a fair amount that would regardless prove that NHMD is still significantly undervalued.
Let's now substitute out the OS to being 3.5 billion shares while taking into consideration both their $268 Million Sugar Contract and their $300 Million Chicken Paw Contract considering a 20% Net Profit Margin to derive an Earnings Per Share (EPS)...
So, based upon this formula for deriving the fundamental valuation of a stock, consider the formulas below:
Revenues x Net Profit Margin = Net Income Net Income ÷ Outstanding Shares (OS) = Earnings Per Share (EPS) Earnings Per Share (EPS) x Price to Earnings (P/E) Ratio = Share Price Valuation
$268,140,000 Sugar Contract $268,140,000 x .20 Net Profit Margin = $53,600,000 Net Income $53,600,000 Net Income ÷ 3,500,000,000 (OS) = .0153 EPS
$300,000,000 Chicken Paw Contract $300,000,000 x .20 Net Profit Margin = $60,000,000 Net Income $60,000,000 Net Income ÷ 3,500,000,000 (OS) = .0171 EPS
Total Combine EPS = .0324 EPS
The P/E Ratio is known as the growth rate for an Industry. The P/E Ratio for companies existing within the Food Processing Industry is currently 23.53 from the link you posted below which is where NHMD would exist post merger: https://csimarket.com/Industry/industry_valuation_ttm.php?pe&ind=505
So...
.0324 EPS x 23.53 P/E Ratio = .762 Per Share NHMD Valuation
This means that if NHMD executes on their business objectives to close the merger deals with having funding to support them both, NHMD should be fundamentally worth trading in the .76 per share range.
NHMD Valuation - Updated Market Capital Perspective
This scenario is based upon a Market Capital perspective. We need to ask ourselves... What would the share price need to be to where when multiplied by the Outstanding Shares (OS) of NHMD that such would warrant $568,140,000 as a max value for both their $268,140,000 Sugar Contract and their $300,000,000 Chicken Paw Contract? We can learn this by taking $568,140,000 for both contracts and dividing by 3,500,000,000 OS: https://www.otcmarkets.com/stock/NHMD/security
$568,140,000 ÷ 3,500,000,000 OS = .162 per share
This means that the maximum valuation for NHMD from a Market Cap perspective is .162 per share. This is the lower of the two valuations based on comparing it to the Fundamental Valuation perspectives.
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