(UPDATED, 17.08.2017)
The present value estimate of a share or a token could be calculated on the basics of a conservative business planning approach and the Discounted Cash Flow (DCF) valuation method. DCF analysis uses future free cash flow projections and discounts them to arrive at a present value estimate, which is used to evaluate the potential for investment.
This calculated discounted value is a result of deducting returns and risks from the future value. It is a standard method to evaluate a start-up value as a negotiation basis for the investment of a venture capital fund (VC).
NB: For the calculations shown below, the difference between fundamental value of the Dentacoin Foundation and the market value of the Dentacoin Foundation must be understood. Both of them are expressed in either DCN or $ USD, but their meaning and worth for investors and traders are individually very different.
The calculated fundamental value (real value) of the Foundation remains almost unchanged throughout the development of Dentacoin, since it is bound to the size of the community and the value per user within the community. The market value can undergo typical market fluctuations and depends mostly on the demand for DCN.
Respectively the calculated fundamental price has no influence on the market price (trading price). The market price per DCN is expected to exceed the real value over time. For further information please read here.
From the numbers above it can be seen that the fundamental value of the Dentacoin blockchain concept is 3756.65% higher than its planned ICO price. The value of the DCN is a calculated fundamental value for the Dentacoin blockchain concept on the basis of its business plan.
Calculated fundamental value of the Dentacoin foundation per DCN:
$ 0,00452
Planned price of DCN during the ICO in October 2017:
$ 0.00011723 (85,3 DCN per USD cent)
Estimated value per Dentacoin user
Businesses that do not put their focus on trading but on the creating of user communities are usually valued by the amount of users, they have on their platform.
Facebook’s market cap, for example, is valued at $450 billion. That equals $225 of value per facebook user.
The team of Dentacoin has worked intensively on the question, what is the value per user of the Dentacoin’s blockchain. By looking at only one tool of the Dentacoin concept, namely the insurance concept, it was seen that the value per user was higher than those of Facebook. Since we are only at the beginning of the development of all our tools and projects we used a cautious value of only $60 per user. We therefore used the highest possible risk factors.
Comparison: Value per Facebook User vs. Value per Dentacoin User
Facebook Market Cap: $450 000 000 000
Number of Facebook Users: 2 000 000 000
Value per user: $225
Dentacoin Market Cap: $36 120 000 000
Number of Dentacoin Users: 600 200 000
Value per user: $60
Value of Dentacoin foundation: $36 120 000 000
Total Amount of Dentacoin DCN: 8 000 000 000 000
Calculated fundamental value per Dentacoin DCN: $0,00452
The complete calculation could be found in the Whitepaper.
What about the Market price?
Nobody can say for certain how the market price of DCN will develop in future. That would be prophecy. When the market takes control, everything is possible. Before making any investment, everyone should examine the business model in details and also — consult experts, if needed.
Whether the price target of DCN is reached or not, depends on three main factors:
1. Speed and quality of development in accordance to the plan.
2. Market factors.
3. Emotional condition of market participants.
All three factors could not be predicted by anyone.
The only thing, known with certainty, is that the team of Dentacoin Foundation will do its best to achieve a market price level that reflects its development.
For further information, the Dentacoin team is always at your disposal.
Originally published at www.dentacoin.com on June 2, 2017.
