Excellent valuation of Nanologix I ran across toda
Post# of 9122
Posted On: 09/04/2014 5:29:13 PM
Excellent valuation of Nanologix I ran across today.
The top professionals of finance state that:
"Peer comparison is one of the most widely used and accepted methods of equity analysis used by professional analysts and by individual investors. It has proved to be efficient and effective, quickly showing which stocks may be overvalued, and which might make good additions to a portfolio. While there are other methods of determining when a stock is worth buying, such as discounted cash flow or technical analysis, peer comparison analysis remains a key tool for uncovering undervalued/overvalued stocks."
The following valuation of Nanologix is based off it's industry averages using the data supplied at Morningstar:
Morningstar has classified Nanologix in the Biotechnology industry, working within the Healthcare sector. The current average PE for that sector is 62.5. Nanologix has reported in January that it has 126,640,882 shares outstanding (which I'm sure has greatly increased as it has year over year). Morningstar also states that the Net Margin for this industry is 12.9%. The Net Margin is the percentage of Total Revenue that is left over after all expenses have been paid.
In order for Nanologix to justify a $0.097 share price, it would have to currently be producing $1,523,617.43 in annual revenue.
So now let's take a look at the $900,000 in annual revenue that Nanologix stated in a press release that an unnamed/unknown/random analyst predicted Nanologix to earn.
Using the Morningstar industry averages mentioned above, Nanologix would have a fair stock valuation of $0.057 per share.
Lastly, let's look at the $64,000 annual revenue Nanologix actually did earn several years ago before it stopped reporting its financial condition. What would be a fair stock valuation for such a company using the industry averages?
($64,000 x 12.9%) / (126,640,882) x (62.5) = $0.0041 per share.
Would anyone like to use the industry average comparison method to see how much revenue it would take for Nanologix to realize a $2, $10, or $20 per share valuation?
The answers are $31,414,792.43, $157,073,962.20, and $314,147,925.30.
The top professionals of finance state that:
"Peer comparison is one of the most widely used and accepted methods of equity analysis used by professional analysts and by individual investors. It has proved to be efficient and effective, quickly showing which stocks may be overvalued, and which might make good additions to a portfolio. While there are other methods of determining when a stock is worth buying, such as discounted cash flow or technical analysis, peer comparison analysis remains a key tool for uncovering undervalued/overvalued stocks."
The following valuation of Nanologix is based off it's industry averages using the data supplied at Morningstar:
Morningstar has classified Nanologix in the Biotechnology industry, working within the Healthcare sector. The current average PE for that sector is 62.5. Nanologix has reported in January that it has 126,640,882 shares outstanding (which I'm sure has greatly increased as it has year over year). Morningstar also states that the Net Margin for this industry is 12.9%. The Net Margin is the percentage of Total Revenue that is left over after all expenses have been paid.
In order for Nanologix to justify a $0.097 share price, it would have to currently be producing $1,523,617.43 in annual revenue.
So now let's take a look at the $900,000 in annual revenue that Nanologix stated in a press release that an unnamed/unknown/random analyst predicted Nanologix to earn.
Using the Morningstar industry averages mentioned above, Nanologix would have a fair stock valuation of $0.057 per share.
Lastly, let's look at the $64,000 annual revenue Nanologix actually did earn several years ago before it stopped reporting its financial condition. What would be a fair stock valuation for such a company using the industry averages?
($64,000 x 12.9%) / (126,640,882) x (62.5) = $0.0041 per share.
Would anyone like to use the industry average comparison method to see how much revenue it would take for Nanologix to realize a $2, $10, or $20 per share valuation?
The answers are $31,414,792.43, $157,073,962.20, and $314,147,925.30.
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