Valuation Question
For those that are interested in valuation. My own company has backgrounds in finance, capital markets, and commercial leasing. We don't do any capital markets finance as its a specialty that requires a large amount of expertise. I have some experience in it in my own personal work history. We use cursory valuation methods for our calculations in house.
If your curious as to what this "may" be worth. We ran it through one of our algo's. We used the "Market Approach" in our computations, projecting market share, earnings, and adoption percentages and variants. Yes there are a few vagaries in this particular situation, yes its nebulous to today's date, yes its speculative. Yes we don't give you a time line, although with negotiations being stated in the release as underway, that certainly could happen any day. One other item of importance is that you have to ask why (and whom) millions of shares were purchased in the high .20's to mid .30's. Precluding any deals, and as it sits now we configured market value:
Ultra conservative: $2.90
Conservative: $3.44
Aggressive: $4.64
https://en.wikipedia.org/wiki/Intellectual_property_valuation
The valuation analysts use numerous approaches in order to reach a reasonable indication of a defined value for the subject intangible assets on a certain date which is referred to as the valuation date. The most common approaches to estimate the fundamental or fair value of the intellectual property are defined as the following:
1. Cost approach: The cost approach is based on the economic principle of substitution. This principle states that an investor will pay no more for an asset than the cost to obtain, by purchasing or constructing, a substitute asset of equal utility. There are several cost approach valuation methods, the most common being the historical cost, replacement cost, and replication cost.
2. Market approach: The market approach is based on the economic principle of competition and equilibrium. These principles conclude that, in a free and unrestricted market, supply and demand factors will drive the price of an asset at equilibrium point. Furthermore, it provides an indication of the value by comparing the price at which similar property has exchanged between willing buyers and sellers. Data on such similar transactions may be accessed in several public sources, including specialized royalty rate databases.[citation needed]
3. Income approach: This approach estimates the fair value of intellectual property by discounting the future economic benefits of ownership at an appropriate discount rate.
4. Direct approach: The direct approach is based on the current value of shares of intellectual property in an Intellectual Property (IP) Share Market.[1]
5. Using the pay-off method on top of the four above mentioned methods is a way to enhance the valuation and analysis of intellectual property [2]