Nate's Food Company (NHMD)

[stervc]

charliewho, the Substitution Property is so beautiful...

This is why the Substitution Property is so beautiful. The formulas I used are market formulas for deriving the Fundamental Valuation of a stock so they will not change. However, you can use the Substitution Property to substitute out any variable to your liking that you deem fit or make more sense in your opinion.

If you believe that their Net Profit Margin is going to be 5% and not the 20% as I had posted, then substitute it out and you would get a share price that is four times lower in the range of .19 per share for NHMD. Considering where we are trading at right now, I think .19 per share would be a fair amount of gains. Wouldn't you think so?

I used 20% for the Net Profit Margin for the Food Processing Industry because I had learned that there is a great chance that more is coming on top of the $268 Million Sugar Contract and the $300 Million Chicken Paw Contract totaling $568 Million in contracts. But primarily I used it because of what was stated within the link below:

As a benchmark for comparison, the most profitable food companies have net profit margins between 20-30%.
https://icicletechnologies.com/2023/01/20/an-introduction-to-mastering-profit-margin-formulas-for-food-manufacturers/#:~:text=The%20Food%20Industry's%20Spoiled%20Profit%20Margin%20Ratio&text=According%20to%20CSIMarket%2C%20the%20trailing,margins%20between%2020%2D30%25

So I figured I would air on the side of being conservative and use the 20% and not the 30% instead for the Net Profit Margin for the Food Processing Industry. My main point that I was trying to get people to see was to simply start thinking for themselves to their own liking and see that $568 Million in contracts is $568 Million in contracts and that no matter how you slice the pie... NHMD is still significantly undervalued, especially at these levels.

v/r
Sterling