Replies to post #206654 on Hannover House Inc (HHSE)

[poster44ny]

If we're talking about a specific stock with a past PM then you can.

[moviesam]

Same way management calculates revenues on a movie that hasn't been made yet.

[mdimport]

There are several ways to value companies. Can do it on tangible book value, book value, PE, revenues, free cash flow, etc.

I picked a model that's similar to the way NFLX is valued: market cap is 5x revenue. Since growth potential is much better for HHSE than NFLX I used a range of 5-7x revenue.

A market cap valuation using a revenue multiple model produced a price band of $0.0211 - $0.0296, whereas the P/E valuation is $0.042. In either case HHSE at $0.013 is severely undervalued.