RHT

4.84%

5.9¢ resonance health limited

Ann: Resignation of CEO & Management Changes, page-44

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Phantom77

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27/06/21

17:54

Post #: 54102757
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Originally posted by bobadah: ↑

RHT has a steadily increasing positive financial position. This is the sort of stock where an NPV can be calculated. The problem with NPV's however, is that they are very dependent on the assumptions used. I have made a very rough calculation as follows:
Discount rate a) 10%pa being a very low interest rate environment, and
b) 15%pa a rate commonly used in earlier years

The last quarterly (31 March 2021) showed cash on hand of $9.2 million following a quarterly net increase of $1.1 million. I have assumed that the initial yearly increase will be $2 million (I think this is conservative, but who knows). I have made three assumptions of increased income (on the initial $2 million assumed), 10%pa, 15%pa and 20%pa. Also, I have used 450 million shares to calculate the NPV per share (estimate of share price).

The answers on these assumptions are:
a) discount rate of 10% pa
10% incrase in income net per annum NPV = $61 million; SP = 13.6c
15% incrase in income net per annum NPV = $105 million; SP = 23.3c
20% incrase in income net per annum NPV = $198 million; SP = 44.0c

b) discount rate of 15% pa
10% incrase in income net per annum NPV = $41 million; SP = 9.0c
15% incrase in income net per annum NPV = $61 million; SP = 13.6c
20% incrase in income net per annum NPV = $61 million; SP = 22.7c

These are just my figures and about the only thing they can be relied on for is that they show just how dependent the final results are on the assumptions. If we get a new income stream of substance they will be way to small.

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Hi

what values did you use for the formula

FV = ? (how did you calculate fv)
r = 10%
t = ?

Is the business bringing in $2m annually profit?

sorry - i dont have a strong finance background.

RHT Price at posting: 15.5¢ Sentiment: Hold Disclosure: Held
1 Upvote

0 Great analysis

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(20min delay)
Last 5.9¢		Change -0.003(4.84%)		Mkt cap ! $26.36M

Open	High	Low	Value	Volume
6.0¢	6.0¢	5.9¢	$30.00K	501.7K

Buyers (Bids)

No.	Vol.	Price($)
1	22024	5.9¢

Sellers (Offers)

Price($)	Vol.	No.
6.0¢	147502	2

View Market Depth

No.	Vol.	Price($)
1	22024	0.059
2	1100000	0.058
1	125000	0.056
1	200000	0.054
1	80000	0.052

Price($)	Vol.	No.
0.060	147502	2
0.063	20000	1
0.065	122500	2
0.068	100000	1
0.070	150189	2

Last trade - 15.59pm 28/06/2024 (20 minute delay)

RHT (ASX) Chart

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