Discounted Cash Flow Calculation for OTCPK:KAVL using Excess Returns Model Model
The calculations below outline how an intrinsic value for Kaival Brands Innovations Group is arrived at using the Excess Return Model. This approach is used for finance firms where free cash flow is difficult to estimate.
In the Excess Return Model the value of a firm can be written as the sum of capital invested currently in the firm and the present value of excess returns that the firm expects to make in the future.
The model is sensitive to the Return on Equity of the company versus the Cost of Equity, how these are calculated is detailed below the main calculation.
The current share price of
Kaival Brands Innovations Group
is above its future cash flow value.
Often investors are willing to pay a
for a company that has a high dividend or the potential for future growth.
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for
it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing
when they are out of season, or how much your home is worth.
The amount the stock market is willing to pay for
Kaival Brands Innovations Group's
is considered below, and whether this is a fair price.
Price based on past earnings
Kaival Brands Innovations Group's earnings available for a low price, and how does
this compare to other companies in the same industry?
In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Kaival Brands Innovations Group has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.
This is quite a rare situation as 97% of companies covered by Simply Wall St do have past financial data. You can see them here.
Show me the analysis anyway
The future performance of a company is measured in the same way as past
performance, by looking at estimated
and how much profit it is expected to make.
Future estimates come from
professional analysts. Just like forecasting the weather, they don’t always get
Expected Capital Markets industry annual growth in earnings.
Earnings growth vs Low Risk Savings
Kaival Brands Innovations Group
expected to grow at an
Unable to compare Kaival Brands Innovations Group's earnings growth to the low risk savings rate as no estimate data is available.
Growth vs Market Checks
Unable to compare Kaival Brands Innovations Group's earnings growth to the United States of America market average as no estimate data is available.
Unable to compare Kaival Brands Innovations Group's revenue growth to the United States of America market average as no estimate data is available.
Unable to determine if Kaival Brands Innovations Group is high growth as no earnings estimate data is available.
Unable to determine if Kaival Brands Innovations Group is high growth as no revenue estimate data is available.
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can
be gauged below. We look back 3 years and see if they were any good at
predicting what actually occurred. We also show the highest and lowest estimates
looking forward to see if there is a wide range.
While we do not consider unaudited financials to be a reliable enough to include in our analysis, you can access them on the OTC Markets Website. If you are looking for more of a qualitative research into the company, you can access Kaival Brands Innovations Group's filings and announcements here.
All data from Kaival Brands Innovations Group Company Filings, last reported 1 year ago, and in
Trailing twelve months (TTM)
annual period rather than quarterly.
OTCPK:KAVL Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions)
Net Income *
*GAAP earnings excluding extraordinary items.
Performance last year
We want to ensure a company is making the most of what it has available. This is
done by comparing the return (profit) to a company's available
It is difficult to establish if Kaival Brands Innovations Group has efficiently used shareholders’ funds last year (Return on Equity greater than 20%) due to its liabilities exceeding its assets.
Unable to establish if Kaival Brands Innovations Group has efficiently used its assets last year compared to the US Capital Markets industry average (Return on Assets) as past financial data has not been reported.
It is difficult to establish if Kaival Brands Innovations Group improved its use of capital last year versus 3 years ago (Return on Capital Employed) as it is currently loss-making.
Kaival Brands Innovations Group's performance over the past 5 years by checking for:
Has earnings increased in past 5 years? (1 check)
Has the earnings growth in the last year exceeded that of the
industry? (1 check)
Is the recent earnings growth over the last year higher than the average annual growth over the
past 5 years? (1 check)
Is the Return on Equity (ROE) higher than 20%? (1 check)
Is the Return on Assets (ROA) above industry average? (1 check)
Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent
earnings report. Some checks require at least 3 or 5 years worth of data.
Kaival Brands Innovations Group
has a total score of
0/6, see the detailed checks below.
Note: We use GAAP Net Income excluding extraordinary items in all our calculations.
A company's financial position is much like your own financial position,
it includes everything you own
The boxes below represent the relative size of what makes up
Kaival Brands Innovations Group's finances.
The net worth of a company is the difference between its assets and liabilities.
Unable to compare short term assets to short term liabilities as Kaival Brands Innovations Group has not reported sufficient balance sheet data.
Kaival Brands Innovations Group has no long term commitments.
This treemap shows a more detailed breakdown of
Kaival Brands Innovations Group's finances. If any of them are yellow this
indicates they may be out of proportion and red means they relate to one of the
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
Unable to establish if Kaival Brands Innovations Group has a high level of physical assets or inventory without balance sheet data.
Kaival Brands Innovations Group has negative shareholder equity (liabilities exceed assets) therefore debt is not covered by short term assets.
Nearly all companies have debt. Debt in itself isn’t
however if the debt is too high, or the company can’t afford to pay the interest
on its debts this may have impacts in the future.
The graphic below shows equity (available funds) and debt, we ideally want to
see the red area (debt) decreasing.
If there is any debt we look at the companies capability to repay it, and
whether the level has increased over the past 5 years.
Management is one of the most important areas of a company. We look at
unreasonable CEO compensation, how long the team and board of directors have
been around for and insider trading.
TENURE AS CEO
Mr. Nirajkumar Patel has been Chief Executive Officer, Chief Financial Officer, President, Treasurer & Director of Quick Start Holdings, Inc. since February 20, 2019. In 2017 and 2018, Mr. Patel served as Vice President for the Board of the Indian Association of the Space Coast, located in Brevard County, Florida. Mr. Patel founded, and has served as a Board member of, the Florida Independent Liquor Stores Owners Association since 2017. In 2013, Mr. Patel launched Just Chill Products LLC, a highly successful developer/manufacturer of high- end CBD products, and has served as its Chief Executive Officer and Chief Science Officer since 2017. In 2017, Mr. Patel created Relax Lab Inc., a producer/manufacturer of a CBD relaxation beverage, and currently serves as its Chief Executive Officer and Chief Science Officer. In 2017, Mr. Patel also created RLX Lab LLC, a producer/manufacturer of a non- CBD relaxation beverage, and currently serves as its Chief Executive Officer and Chief Science Officer. In 2017, Mr. Patel also founded KC Innovations Lab Inc., a CBD white- label manufacturing service and developer/producer of best- selling white- label CBD products including cosmetics, edibles, beverages, topicals, and vape oils, and serves as its Chief Executive Officer and Chief Science Officer. He attended AISSMS College of Pharmacy in Pune, India and received a Bachelor of Science Degree in Pharmacy in 2004. After moving to the United States in 2005, Mr. Patel became a United States’ citizen in 2008 and obtained a Master’s Degree in Chemistry from the Florida Institute of Technology in 2009. Mr. Patel is an IASSC Certified Lean Six Sigma Black Belt professional, which certification he obtained in 2010, and is a prominent local businessman in Brevard County, Florida.
Insufficient data for Nirajkumar to compare compensation growth.
Insufficient data for Nirajkumar to establish whether their remuneration is reasonable compared to companies of similar size in United States of America.
COO, Secretary & Director
Board of Directors
COO, Secretary & Director
Who owns this company?
Recent Insider Trading
No 3 month open market individual insider trading information.
Kaival Brands Innovations Group, Inc. does not have significant operations. It intends to pursue business opportunities within the electronic cigarettes and vaporizers, and the CBD industries. The company was formerly known as Quick Start Holdings, Inc. and changed its name to Kaival Brands Innovations Group, Inc. in July 2019. Kaival Brands Innovations Group, Inc. is based in Melbourne, Florida. Kaival Brands Innovations Group, Inc. operates as a subsidiary of Kaival Brands Innovations Group, LLC.
Simply Wall Street Pty Ltd (ACN 600 056 611), is a Corporate Authorised Representative (Authorised Representative Number: 467183) of Sanlam Private Wealth Pty Ltd (AFSL No. 337927). Any advice contained in this website is general advice only and has been prepared without considering your objectives, financial situation or needs. You should not rely on any advice and/or information contained in this website and before making any investment decision we recommend that you consider whether it is appropriate for your situation and seek appropriate financial, taxation and legal advice. Please read our Financial Services Guide before deciding whether to obtain financial services from us.