FRRACT TOKEN
40% of the company's net profit will be
distributed to token holders
P = D1 / (k-g)
P = $2,224,936 / (1.21-1.2) = $2,224,936 / 0.01 =
$222 482 767.2
The discount rate in the oil and gas sector is 1.12, with an additional risk factor
for crypto-projects of 0.09. Consequently, the total discount rate in our case is
1.21.
According to pessimistic calculations, the growth rate of cash flows is 20% per
year. We will now calculate the fair FDV after fees.
D1 – value of cash flow in the future year, calculated as D0*(1+g)
g – growth rate of future cash flows
k – discount rate
A 20% investment of the company's net profit will be allocated to the
development of the organisation, with the objective of increasing its revenue and
profit. Additionally, 40% of the company's net profit will be distributed to token
holders. It is therefore clear that the price of the token will inevitably increase
because of these two factors.
According to Gordon's formula, which is used by institutional investors to
determine the growth of a company's stock capitalisation in absolute terms, the
pessimistic valuation of FDV (Fully Diluted Valuation) after two years will be:
P = D1 / (k-g)
D1 – value of cash flow in the future year, calculated as D0*(1+g)
g – growth rate of future cash flows
k – discount rate
The discount rate in the oil and gas sector is 1.12, with an additional risk factor
for crypto-projects of 0.09. Consequently, the total discount rate in our case is
1.21.
According to pessimistic calculations, the growth rate of cash flows is 20% per
year. We will now calculate the fair FDV after fees.
The discount rate in the oil and gas sector is 1.12, with an additional risk factor
for crypto-projects of 0.09. Consequently, the total discount rate in our case is
1.21.
According to pessimistic calculations, the growth rate of cash flows is 20% per
year. We will now calculate the fair FDV after fees.
P = $2,224,936 / (1.21-1.2) = $2,224,936 / 0.01 =
$222 482 767.2
Given a total supply volume of 110,000,000 $FRACT, the presented calculations
demonstrate that the pessimistic upside