PPY Valuation Update

in peerplays •  7 years ago  (edited)

Here’s an updated valuation for Peerplays. I based my first valuation on very conservative forecasts for future revenues in the online betting industry. Other studies have indicated that the industry revenues are approaching one trillion-dollars by 2021. Additionally, some of Peerplays revenues are used to cover operating costs which I’ve included in my new valuation. I’ve also increased the discount and terminal growth rates for better accuracy.

Discounted Cash Flows Model

  • Discount Rate: 15%
  • Terminal Growth Rate: 5%
  • Net Profit: 85% of total revenue
  • Token Payout: 5% of Net Profit

Previous Valuation:

https://steemit.com/peerplays/@r-craig/peerplays-ppy-analysis-and-valuation

As you can see from the updated industry forecasts this model indicates that Peerplays' intrinsic value is $116.76 per token.

If you have any questions or suggestions please let me know,

Thanks!

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Nicely done. It's staggering how little marketshare is needed when the markets are so huge. If you think that in your final numbers Peerplays is still leaving 99.7% of the market on the table... the upside to this token is unreal. The blockchain and token are a perfect fit. It's all about dapps and adoption... Thanks for sharing!

Your very welcome! I agree. Peerplays token has incrediable growth potential

Thank for share @r-craig

Well, the industry is HUGE. The market share will be small so its hard to guess but hopefully they will succeed. It's definitely worth it an investment.

UP VOTE 😄

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I just updated the post which includes the discount rate, terminal growth rate, net profit %, and token payout%. Sorry for not including this earlier. Now you can check my calculations :)

I updated the valuation where the terminal value wasn't discounted back to 2018. Sorry about the error in my calculation. The valuation per token is $116.76