DatChat, Inc. (DATS) Discounted Future Market Cap

DatChat, Inc.

DATS (NASDAQ)

(%)

Valuation
DatChat, Inc. Discounted Future Market Cap

"""
    Model: Discounted Future Market Cap

# Render model description
model.render_description(r"""
## Discounted Future Market Cap

This model estimates the intrinsic value of a common share by projecting the Future Market Capitalization using the estimated PE Ratio and then discounting it to the Present using an Annual Required Rate of Return.
""")

# Initialize assumptions
assumptions.init({
    "data": {
        "%discount_rate": None,
        "beta": data.get("profile:beta", default=1),
        "%risk_free_rate": data.get("treasury:year10"),
        "%market_premium": data.get("risk:totalEquityRiskPremium"),
        "pe_ratio": data.get("quote:close") / data.get("income:eps"),
        "%revenue_growth_rate": None,
        "%net_income_margin": None,
        "historical_years": 10,
        "projection_years": 5,
    },
    "hierarchies": [{
        "parent": "%discount_rate",
        "children": ["beta", "%risk_free_rate", "%market_premium"]
    }]
})

# Calculate cost of equity
cost_of_equity = assumptions.get("%risk_free_rate") + assumptions.get("beta") * assumptions.get("%market_premium")
assumptions.set("%discount_rate", cost_of_equity)

# Compute metrics
data.compute({
    "%grossMargin": "income:grossProfit / income:revenue",
    "%operating_margin": "income:operatingIncome / income:revenue",
    "%netMargin": "income:netIncome / income:revenue",
    "%revenueGrowthRate": "function:growth:income:revenue",
    "%netIncomeGrowthRate": "function:growth:income:netIncome",
    "%totalStockholdersEquityGrowthRate": "function:growth:balance:totalStockholdersEquity",

# Calculating NOPAT (Net Operating Profit After Taxes)
    "%taxRate": "income:incomeTaxExpense / income:incomeBeforeTax",
    "incomeTax": "income:operatingIncome * %taxRate",
    "nopat": "income:operatingIncome - incomeTax",

# Calculating Invested Capital
    "investedCapital": [
        "balance:totalNonCurrentAssets", "-", "balance:cashAndCashEquivalents", "+",
        "balance:totalCurrentAssets", "-", "balance:totalCurrentLiabilities"
    ],
    "%roic": "nopat / investedCapital",
})

assumptions.set("%net_income_margin",
                data.average(f"%netMargin:{-assumptions.get('historical_years')}->0"))  # Historical average
assumptions.set("%revenue_growth_rate",
                data.average(f"%revenueGrowthRate:{-assumptions.get('historical_years')}->0"))  # Historical average

# Calculate a linear regression for forecasting revenues
data.compute({
    "linearRegressionRevenue": f"function:linear_regression:income:revenue start:{-assumptions.get('historical_years')}",
}, forecast=assumptions.get("projection_years"))

# Compute forecasted values and ratios
data.compute({
    "income:revenue": f"function:compound:{data.get('linearRegressionRevenue:1')} rate:{assumptions.get('%revenue_growth_rate')} offset:-1",
    "%revenueGrowthRate": "function:growth:income:revenue",
    "income:netIncome": f"income:revenue * {assumptions.get('%net_income_margin')}",
}, forecast=assumptions.get("projection_years"))

projected_revenue = data.get("revenue")
projected_net_income = data.get(f"income:netIncome:{assumptions.get('projection_years')}")

shares_outstanding = data.get("income:weightedAverageShsOut")
future_market_cap = assumptions.get("pe_ratio") * projected_net_income
discounted_future_market_cap = future_market_cap / (
            (1 + assumptions.get("%discount_rate")) ** assumptions.get("projection_years"))

stock_value = discounted_future_market_cap / shares_outstanding

# Set the final value
model.set_final_value({
    "value": stock_value,
    "units": "$"
})

# Render results
model.render_results([
    [stock_value, "Present Value", "$"],
    [projected_net_income, "Estimated net income", "$"],
    [future_market_cap, "Estimated market capitalization", "$"],
    [discounted_future_market_cap, "Market capitalization discounted to present", "$"],
    [shares_outstanding, "Shares Outstanding", "#"],
    [data.get("income:eps"), "Earnings Per Share (EPS)", "$"],
    [data.get("quote:close"), "Market Price", "$"],
    [data.get("ratio:priceEarningsRatio"), "Price to Earnings (PE) Ratio", "#"]
])

# Render chart
model.render_chart({
    "data": {
        "income:revenue": "Revenue",
        "income:netIncome": "Net Income",
        "linearRegressionRevenue": "Linear Regression Revenue"
    },
    "start": -assumptions.get("historical_years"),
    "end": "*",
    "properties": {
        "title": "Historical and forecasted data",
        "number_format": "M",
        "set_editable": [
            "income:revenue",
            "income:netIncome"
        ],
        "hidden_keys": ["linearRegressionRevenue"]
    }
})

# Render table for estimated future values
model.render_table({
    "data": {
        "income:revenue": "Revenue",
        "%revenueGrowthRate": "Revenue Growth Rate",
        "income:netIncome": "Net Income",
    },
    "start": -1,
    "end": "*",
    "properties": {
        "title": "Estimated Future Values",
        "order": "ascending",
        "number_format": "M"
    }
})

# Render historical values table
model.render_table({
    "data": {
        "income:revenue": "Revenue",
        "income:costOfRevenue": "Cost of Revenue",
        "income:grossProfit": "Gross Profit",
        "%grossMargin": "Gross Margin",
        "income:operatingIncome": "Operating Income",
        "%operating_margin": "Operating Margin",
        "income:netIncome": "Net Income",
        "%netMargin": "Net Margin",
    },
    "start": -assumptions.get("historical_years"),
    "end": 0,
    "properties": {
        "title": "Historical Values",
        "display_averages": True,
        "order": "descending",
        "number_format": "M"
    },
})

# Render historical growth rates table
model.render_table({
    "data": {
        "income:revenue": "Revenue",
        "%revenueGrowthRate": "Revenue Growth Rate",
        "income:netIncome": "Net Income",
        "%netMargin": "Net Margin",
        "%netIncomeGrowthRate": "Net Income Growth Rate",
        "balance:totalStockholdersEquity": "Stockholders Equity",
        "%totalStockholdersEquityGrowthRate": "Equity Growth Rate",
        "%roic": "Return on Invested Capital (ROIC)",
        "nopat": "After-tax Operating Income",
        "%taxRate": "Income Tax Rate",
        "investedCapital": "Invested Capital",
    },
    "start": -assumptions.get("historical_years"),
    "end": 0,
    "properties": {
        "title": "Historical Growth Rates",
        "display_averages": True,
        "order": "descending",
        "number_format": "M"
    },
})

# Set description for assumptions
assumptions.set_description({
    "%discount_rate": r"""
        ## Discount Rate

`Discount Rate` = `Cost of Equity` = `Risk Free Rate` + `Beta` * `Market Premium`

The cost of equity is the theoretical rate of return that an equity investment should generate. It is calculated using the CAPM formula.

[Read More](https://www.investopedia.com/terms/c/costofequity.asp#mntl-sc-block_1-0-20)
    """,

"beta": r"""
        ## Beta

Beta is a value that measures the price fluctuations (volatility) of a stock with respect to fluctuations in the overall stock market.
    """,

"%risk_free_rate": r"""
        ## Risk-Free Rate

The risk-free rate represents the interest an investor would expect from an absolutely risk-free investment over a specified period of time.
        By default, it is equal to the current yield of the U.S. 10 Year Treasury Bond.
    """,

"%market_premium": r"""
        ## Market Premium

Market risk premium represents the excess returns over the risk-free rate that investors expect for taking on the incremental risks connected to the equities market.
    """,

"pe_ratio": r"""
        ## Price to Earnings (PE) Ratio

Estimated Price to Earnings (PE) Ratio at the end of the projection period.

`Future Market Cap` = `PE Ratio` * `Projected Net Income`
    """,

"%revenue_growth_rate": r"""
        ## Revenue Growth Rate

The annual revenue growth rate is applied to projected revenue starting from the second projection year onward.
    """,

"%net_income_margin": r"""
        ## Net Income Margin

Net Income expressed as a percentage of Revenue.
    """,

"historical_years": r"""
        ## Historical Years

The number of historical years used to calculate averages for historical data.
    """,

"projection_years": r"""
        ## Projection Years

The number of years for projecting the analysis into the future.
    """,
})

print("End of model.")

Estimated Value

USD

Market Price 2.58 USD

* Values are not guaranteed, please do your own
research before making investment decisions.

#Discounted Future Market Cap

Interactive Assumptions

Discount Rate #Discount Rate `Discount Rate` = `Cost of Equity` = `Risk Free Rate` + `Beta` * `Market Premium` The cost of equity is the theoretical rate of return that an equity investment should generate. It is calculated using the CAPM formula. Read More	%
↳ Beta #Beta Beta is a value that measures the price fluctuations (volatility) of a stock with respect to fluctuations in the overall stock market.	#
↳ Risk Free Rate #Risk-Free Rate The risk-free rate represents the interest an investor would expect from an absolutely risk-free investment over a specified period of time. By default, it is equal to the current yield of the U.S. 10 Year Treasury Bond.	%
↳ Market Premium #Market Premium Market risk premium represents the excess returns over the risk-free rate that investors expect for taking on the incremental risks connected to the equities market.	%
Pe Ratio #Price to Earnings (PE) Ratio Estimated Price to Earnings (PE) Ratio at the end of the projection period. `Future Market Cap` = `PE Ratio` * `Projected Net Income`	#
Revenue Growth Rate #Revenue Growth Rate The annual revenue growth rate is applied to projected revenue starting from the second projection year onward.	%
Net Income Margin #Net Income Margin Net Income expressed as a percentage of Revenue.	%
Historical Years #Historical Years The number of historical years used to calculate averages for historical data.	#
Projection Years #Projection Years The number of years for projecting the analysis into the future.	#

Results
Present Value	1.92 Thou. USD
Estimated net income	-7.97 Bil. USD
Estimated market capitalization	14.68 Bil. USD
Market capitalization discounted to present	7.86 Bil. USD
Shares Outstanding	4.09 Mil.
Earnings Per Share (EPS)	-1.4 USD
Market Price	2.58 USD
Price to Earnings (PE) Ratio	-2.31

Historical and forecasted data

In Millions of USD

{"sectionId": "section-chart-1", "sectionType": "chart", "title": "Historical and forecasted data", "dates": [2015, 2016, 2017, 2018, 2019, 2020, 2021, 2022, 2023, 2024, 2025, 2026, 2027, 2028, 2029], "series": [{"label": "Revenue", "mappingKey": "income:revenue", "data": [0.0, 0.0, 0.0, 0.0, 0.0, 0.0, 0.004, 0.046, 0.001, 0.0, {"y": 0.014, "oy": 0.014, "e": true, "c": 2025, "g": 3021, "og": 3021}, {"y": 0.041, "oy": 0.041, "e": true, "c": 2026, "g": 198.8, "og": 198.8}, {"y": 0.122, "oy": 0.122, "e": true, "c": 2027, "g": 198.8, "og": 198.8}, {"y": 0.363, "oy": 0.363, "e": true, "c": 2028, "g": 198.8, "og": 198.8}, {"y": 1.08, "oy": 1.08, "e": true, "c": 2029, "g": 198.8, "og": 198.8}], "dataType": ".", "numberFormat": "M", "hidden": false}, {"label": "Net Income", "mappingKey": "income:netIncome", "data": [-0.261, -1.55, -2.5, -4.91, -6.73, -1.03, -10.83, -12.05, -8.4, -4.24, {"y": -99.95, "oy": -99.95, "e": true, "c": 2025, "g": 2257, "og": 2257}, {"y": -298.7, "oy": -298.7, "e": true, "c": 2026, "g": 198.8, "og": 198.8}, {"y": -892.4, "oy": -892.4, "e": true, "c": 2027, "g": 198.8, "og": 198.8}, {"y": -2666, "oy": -2666, "e": true, "c": 2028, "g": 198.8, "og": 198.8}, {"y": -7967, "oy": -7967, "e": true, "c": 2029, "g": 198.8, "og": 198.8}], "dataType": ".", "numberFormat": "M", "hidden": false}, {"label": "Linear Regression Revenue", "mappingKey": "linearRegressionRevenue", "data": [-0.002, 0.0, 0.001, 0.003, 0.004, 0.006, 0.007, 0.009, 0.011, 0.012, 0.014, 0.015, 0.017, 0.018, 0.02], "dataType": ".", "numberFormat": "M", "hidden": true}], "editableDates": {"2025": 36, "2026": 37, "2027": 38, "2028": 39, "2029": 40}, "properties": {"number_format": "M", "display_table": true}, "width": "full"}

Edit Chart Values	2025	2026	2027	2028	2029

↳ Growth Rate

Estimated Future Values

amounts of USD except for #	2024	LTM	2025	2026	2027	2028	2029
Revenue	0	0	0.014	0.041	0.122	0.363	1.08
Revenue Growth Rate	-35.12%	-11.01%	3,022%	198.8%	198.8%	198.8%	198.8%
Net Income	-4.24	-4.57	-99.95	-298.7	-892.4	-2,666	-7,967

Historical Values

amounts of USD except for #	Average	LTM	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
Revenue	0.01	0	0	0.001	0.046	0.004	0	0	0	0	0	0
Cost of Revenue	0.574	1.01	0	0.044	0.177	2.96	0.494	0.02	0.027	0.188	0.709	0.109
Gross Profit	-0.515	-0.984	0	-0.043	-0.131	-2.96	-0.494	-0.02	-0.027	-0.188	-0.709	-0.109
Gross Margin	-65,340%	-253,530%	100%	-6,399%	-283.6%	-66,570%
Operating Income	-4.84	-5.28	-5.28	-8.72	-12.23	-10.84	-1.08	-0.981	-4.63	-2.39	-1.54	-0.257
Operating Margin	-827,780%	-1,360,290%	-1,211,220%	-1,297,170%	-26,460%	-243,760%
Net Income	-5.19	-4.57	-4.24	-8.4	-12.05	-10.83	-1.03	-6.73	-4.91	-2.5	-1.55	-0.261
Net Margin	-734,350%	-1,179,010%	-972,280%	-1,250,740%	-26,080%	-243,630%

Historical Growth Rates

amounts of USD except for #	Average	LTM	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
Revenue	0.01	0	0	0.001	0.046	0.004	0	0	0	0	0	0
Revenue Growth Rate	198.8%	-11.01%	-35.12%	-98.55%	939.7%
Net Income	-5.19	-4.57	-4.24	-8.4	-12.05	-10.83	-1.03	-6.73	-4.91	-2.5	-1.55	-0.261
Net Margin	-734,350%	-1,179,010%	-972,280%	-1,250,740%	-26,080%	-243,630%
Net Income Growth Rate	208.4%	7.91%	-49.56%	-30.25%	11.28%	949.4%	-84.67%	37.03%	96.46%	61.7%	493.6%	799.5%
Stockholders Equity	5.08	10.28	6.88	6.1	12.56	20.08	0.582	-0.34	-0.209	-0.274	0.077	0.093
Equity Growth Rate	-415.3%	49.47%	12.77%	-51.42%	-37.48%	3,349%	-271.3%	62.46%	-23.73%	-454.3%	-16.87%	-7,187%
Return on Invested Capital (ROIC)	-1,335%	-87.59%	-149%	-169.4%	-111.3%	-30,700%	1,070%	263.6%	1,132%	716.2%	13,010%	339.2%
After-tax Operating Income	-4.87	-5.73	-5.28	-8.72	-12.14	-10.84	-1.14	-1.01	-4.63	-2.28	-1.54	-0.257
Income Tax Rate	-1.88%	-8.59%	0%	0%	0.726%	-0.001%	-5.36%	-2.69%	0%	4.62%	0%	0%
Invested Capital	2.26	6.54	3.54	5.15	10.91	0.035	-0.106	-0.382	-0.408	-0.318	-0.012	-0.076

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DatChat, Inc. Discounted Future Market Cap

Estimated Value

USD

Market Price 2.58 USD

#Discounted Future Market Cap

Interactive Assumptions

#Discount Rate

#Beta

#Risk-Free Rate

#Market Premium

#Price to Earnings (PE) Ratio

#Revenue Growth Rate

#Net Income Margin

#Historical Years

#Projection Years

Results

Historical and forecasted data

Estimated Future Values

Historical Values

Historical Growth Rates