Valuation Best Guess?, page-7

No company can grow forever. The question is how many quarters of growth left and what dividend they will pay out by then. Do your own prediction.

If you ask my estimation, because the growth rate is already slowing down. I expect the company will hit it 1b loan book target in about 4 quarters then stop. Lets double their cashflow per quarter to 2.5m, and assume they pay them out 100% in dividend. I know I am very generous here. Also assume there is no further capital rasing, again I highly doubt it. That gives us 10m in dividend per year. If you divive that by the number of share that will give 0.7 cent dividend. For the shake of generousity, let round it up to 1 cent.

So for a company that MAY pay 1cent dividend in near future, what does its share worth? No more than 12 cents, but that is only a possible future. So right now I value wzr about 8 cents.

Please dont believe me, I value most of growth company zero. Wzr is still a better company in the bunch of worthless ones.