Gary,
To estimate a fair price for the stock, I used a simplified approach based on the provided information. Please note that this is a rough estimate:
1. Revenue growth rate: 100% (from $8M to $16M)
2. Also, CRTG authorized share (AS) amount is still 1.5 Billion so anticipating the OS count going to 1,030,561,076, since the 10,000,000 Series C Preferred Stock will be convertible into 1,500,000,000 Common Stock, but would exceed the AS amount and conversion is not mandatory at the present time.
3.Total outstanding shares after the exchange:
315,000,000 + 705,561,076 + 10,000,000 =
1,030,561,076
Let's use the Price-to-Sales (P/S) ratio method, which is suitable for early-stage companies.
Assumptions:
- Industry average P/S ratio: 5-10 (varies depending on the industry)
- Growth factor: 1.5 (due to high growth rate)
Estimated 2025 Revenue: $16M
Estimated 2025 Enterprise Value (EV): $16M x 7.5 (avg. P/S ratio) = $120M
Estimated 2025 Equity Value: $120M (assuming no debt)
Now, let's calculate the estimated fair price per share:
Estimated Fair Price = Estimated Equity Value / Outstanding Shares
= $120M / 1,030,561,076
˜ $0.11644 (or $0.12)
Bob