ASC 6.67% 1.6¢ adultshop.com limited

ASC Valuation

  1. 164 Posts.
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    Hi everybody.

    I rarely write anything on these forums but I thought I could share some information with you and hope this interests people regarding ASC.

    I did some calculations on the value.
    My valuation is based on the profit forecast announced few days ago but whether the forcast itself is credible is different matter.
    Well here is the figures used on my calculation.

    Conservative growth rate per year : 5%
    Cost of capital used: 12%
    Net present value of Net Asset backing: $11,646,000
    EBITDA: $10,000,000
    Shares Outstanding: 350,000,000
    Years used for Calculation: 10 Years

    Please note that the company's growth for the past was almost double every half year but I used a conservative approach to the valuation because there is always an uncertainty to the profitability. Also I used only 10 years to be more realistic. If I used a perpetuity the value would be much higher.

    Based on those figures, I calculated 63 cents per share for ASC.

    Please note that this is only a rough valuation of the company. If you have any thoughts or comments, please reply.

    Just to mention that I'm not trying to ramp up the stock, I did a valuation on MXE few months ago when it was hoovering around 5 cents to be 19 cents. Well it didn't reach it but it did go up to 18.5cents. posted in investorweb and hotcopper.

    I do hold ASC. And willing to hold long term.

 
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