TONR .14+ per share Fundamental Valuation to Consider…
Below is a valuation for all to consider based upon what the company had PR-ed for one of two of their Artificial Intelligence (AI) companies coming into TONR that is claiming to be doing over $120 Million in Revenues with a 42% Net Profit Margin as indicated below:
Before reading any further, understand that this valuation is based on the company bringing in this AI company that’s generating the numbers stated. Keep in mind, all of my valuation posts are not based on if I am right or wrong. My posts are not the gospel. They are based on the company having what they say they have and doing what they say they are doing. If the company executes on such, then my valuation could be used as a framework for investors to use to be able to gage a better investing or exit strategy. If the company doesn’t do the things they are claiming to manifest into a reality, then my valuation posts would be of zero value. Below is what I have derived for the fundamental valuation of TONR if they deliver the numbers they stated:
** Important to Note: The acquisition of both AI companies will include a significant share buyback as an essential part of the final plan this could significantly reduce the OS which would enhance the valuation below to be higher. For the purpose of this post, I will keep the OS to being the same as currently indicated on OTC Markets.
Revenues x Net Profit Margin = Net Income Net Income ÷ Outstanding Shares (OS) = Earnings Per Share (EOS)
.00718 EPS x 20 PE Ratio = .1436 Share Price for TONR
With this .1436 share price consideration for TONR, there are a few more things to consider. First, I used 20 as the PE Ratio. The PE Ratio is considered the Growth Rate for a company within a particular Sector or Industry. I think we all can see that the pulse for the AI Industry currently existing is growing likely as a faster rate than 20 for a PE Ratio. My point to understand here is that TONR is significantly undervalued if they execute on bringing in what they had previously PR-ed.
Register for free to join our community of investors and share your ideas. You will also get access to streaming quotes, interactive charts, trades, portfolio, live options flow and more tools.