Current stock price analyzed IGPK, OTC board. Why? A suspected reverse merger with a Chinese online sales platform company. This would allow the Chinese company to enter the American market and capitalize on the stock value as a US company and by extension USA investment dollars. For IGPK two values will be extrapolated from other comparable firms. Amazon, Facebook, Microsoft, Alibaba [Chinese], Nio [Chinese]. Each value is shown at 3 possible levels.
EPS – We will use for comparable firms an average of 20%, 30%, and 40% of gross revenue for earnings per share. It can be as high as 50%.
PE – We will use for comparable firms an average of 10, 20, and 30 for the price to earnings ratio. Chinese firms have notably lower PE ratios than US firms, Nio = 0, Alibaba = 10 where Amazon = 59.
IGPK
.0098 – current stock price.
7B – current valuation of Chinese companies’ gross revenue.
New merged company float [number of shares outstanding].
A. 1.5B – share float.
a. 7B * 20% = 1.4B, EPS = 1.4B/1.5B = .93$
b. 7B * 30% = 2.1B, EPS = 2.1B/1.5B = 1.40$
c. 7B * 40% = 2.8B, EPS = 2.8B/1.5B = 1.86$
B. 4B – common shares outstanding.
a. 7B * 20% = 1.4B, EPS = 1.4B/4B = .35$
b. 7B * 30% = 2.1B, EPS = 2.1B/4B = .525$
c. 7B * 40% = 2.8B, EPS = 2.8B/4B = .70$
C. PE =
a. 10
b. 20
c. 30
Comparable Equations
A. Based on 1.5B float.
P = 10 * .93$ = 9.30$ ??P = 20 * .93$ = 18.60$??P = 30 * .93$ = 27.90$??
P = 10 * 1.40$ = 14.00$??P = 20 * 1.40$ = 28.00$??P = 30 * 1.40$ = 42.00$
P = 10 * 1.86$ = 18.60$??P = 20 * 1.86$ = 37.20$??P = 30 * 1.86$ = 55.40$
B. Based on 4B outstanding.
P = 10 * .35$ = 3.50$??P = 20 * .35$ = 7.00$??P = 30 * .35$ = 10.50$
P = 10 * .525$ = 5.25$??P = 20 * .525$ = 10.50$??P = 30 * .525$ = 15.75$
P = 10 * .70$ = 7.00$??P = 20 * .70$ = 14.00$??P = 30 * .70$ = 21.00$
Series A. range [1.7B float] = 9.30$ - 55.40$.
Series B. range [4B float] = 3.50$ - 21.00$.
Combined summary PPS:
Low Range = +- 3.50$.
Middle Range = 9.30$ - 21.00$
High Range = +- 55.40$
