Discounted rate is NPV calculations are a little more complex - discount rate is used to determine the present value of future cash flows.
In the WiseOwl valuation a discount rate of 33% - which is high for NPV calculations - has been used due to KSX being in the early stage of development where market penetration is estimated only and hard to confirm as the present point.
As cash flows become more certain lower discount rates are used, without changing any other factors the following is possible.
ie 15% discount = 11.1c per share NPV 10% discount = 15.3c per share NPV
So in essence all KSX needs to do is to sure up cash flows, which will result in lower discount rates and higher per share valuation.
Happy to be corrected by NPV experts!
KSX Price at posting:
2.4¢ Sentiment: Hold Disclosure: Held
