The Discounted Cash flow method only gets you a meaningful outcome when you know the future cash flows. Usually applied to mature businesses (Like Coles, Woolworths, Telstra) or mining companies where the annual mining output and revenues can be estimated with some certainty.
Not sure how they can apply the DCF method when they do not know the sustainable revenues.
I consider this a rather useless valuation at this stage and in particular for a business like Zoono..
Let's see when we get the figures for May and June, making then the assumption that revenues will be maintained (Which is a big assumption) and apply DCF then.
A little tweek in the assumption can double or half the value of a business.
DCF analysis also requires a relatively stable economic environment in the future for an extended time (at least 10 years) which is probably questionable at this stage.
Hmmm I don't think this is very professional.
K
ZNO Price at posting:
$3.10 Sentiment: Buy Disclosure: Held
