Diversified Global Holdings Group, Inc.(fka DGHG)

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Diversified Global (OTCQB: DGHG) Appears Significantly Undervalued

Diversified Global Holdings Inc. (OTCQB: DGHG) appears significantly undervalued by both intrinsic valuation and growth metrics. Here are some financial highlights that underscore these points:

Intrinsic Value Could Approach $2.00+ per Share

In addition to its Diversified Global recently reported $203,626,037, or $2.33 per share, in shareholders’ equity, compared to its $1.05 share price, suggesting that it is trading at a 122% discount.
Even excluding land, equipment and goodwill, the company’s total assets stand at approximately $0.38 per share, which is a significant percentage of the share price.

Rapid Growth Justifies a Higher Multiple

Diversified Global recently reported top-line revenue growth of 307% and bottom-line growth rates of 256%, according to its latest 10-Q filing with the SEC.
Using these metrics, the company’s price-earnings to growth (PEG) ratio is just 0.3, compared to a fair valuation of 1.0 (a metric widely used by analysts).
Even with a discounted PEG of 0.8, the company’s stock should be trading closer to $2.80 per share with a price-earnings ratio of about 56x.

Improving Financials Drive Future Results

Diversified Global appears to be an exception with its improving financial condition, diversified risk profile, and strong pipeline of opportunities in key emerging markets.
In addition to top-line and bottom-line growth, the company reduced its share count last quarter by 6.7%.

As a result, Diversified Global Holdings Inc. (OTCQB: DGHG) may be one stock for emerging investors to consider for their portfolios. With strong growth, profitability, and potential moving forward, this stock is not only undervalued, but also very promising as a growth play for the coming quarters and years.