Here Is A Method That Is Helping valuation

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Valuation

Recognizing the balance sheet we can do a pretty good job of evaluating the company so in terms of this process we would need to look at our more financial statements and do some reformatting and we would need to do some adjustments for transitory items that are moving the company’s performance away from its core would calculate based on an advanced dew point ratio analysis we do our forecasting computer cost of capital and our valuation let’s have.

A look at an example here so Brisbane property values this is courtesy of one of my financial statement analysis students Mr. Christian Campo from this year and so we can see Christian has done in fact a lot of work understandingBenetech and its activities and the value proposition and then done.

A lot of work on the financial information prepare it for the forecasting performance evaluation come up with some forecasts here of future revenues net operating profit after tax comprehensive income and the abnormal earnings so.

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The earnings above the cost of capital rate of earnings a whole heap of ratios here have been produced and when we have a look at the outcome of this Christian came up with I were today’s normal pace and best-case scenarios in terms of the future value propositions as entering by.

This company so obviously there’s still a lot of uncertainty because the technology under development so at a time when the share price is trading at cents per share and.

The -week range was between stems and one dollar eight Christian has come up with these worst case normal case best case scenarios here all share price down here and we can see that one of the biggest uncertainties in this calculation is actually not accounting it’s the cost of capital and so this cost of capital here maybe a little know that.