Future FinTech Group Inc. (FTFT) Discounted Future Market Cap

Future FinTech Group Inc.

FTFT (NASDAQ)

(%)

Valuation
Future FinTech Group 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",
})

data.set_default_range(f"{-assumptions.get('historical_years')}->0")

assumptions.set("%net_income_margin", data.average(f"%netMargin"))
assumptions.set_bounds(
    "%net_income_margin", low=0, high="100%"
)

assumptions.set("%revenue_growth_rate", data.average(f"%revenueGrowthRate"))
assumptions.set_bounds(
    "%revenue_growth_rate", low=0, high="25%"
)

# 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",
        "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.")

Model Info

Estimated Value

USD

Market Price 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	0.049 USD
Estimated net income	-5.4 Mil. USD
Estimated market capitalization	209.4 Thou. USD
Market capitalization discounted to present	120.1 Thou. USD
Shares Outstanding	2.45 Mil.
Earnings Per Share (EPS)	-33 USD
Market Price	1.28 USD
Price to Earnings (PE) Ratio	-0.08

Historical and forecasted data

Monetary values are in 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": [86440000, 34407000, 10463000, 888670, 941117, 370657, 25051000, 23881000, 21697000, 2158000, {"y": -2986971, "oy": -2986971, "e": true, "c": 2025, "g": -238.4, "og": -238.4}, {"y": -3733714, "oy": -3733714, "e": true, "c": 2026, "g": 25.0, "og": 25.0}, {"y": -4667142, "oy": -4667142, "e": true, "c": 2027, "g": 25.0, "og": 25.0}, {"y": -5833928, "oy": -5833928, "e": true, "c": 2028, "g": 25.0, "og": 25.0}, {"y": -7292410, "oy": -7292410, "e": true, "c": 2029, "g": 25.0, "og": 25.0}], "dataType": ".", "displayAs": "line", "hidden": false}, {"label": "Net Income", "mappingKey": "income:netIncome", "data": [2949000, -5293000, -102584000, -169997000, -25229000, 88930000, -13595000, -13628000, -33653000, -32956000, {"y": -2211254, "oy": -2211254, "e": true, "c": 2025, "g": -93.29, "og": -93.29}, {"y": -2764068, "oy": -2764068, "e": true, "c": 2026, "g": 25.0, "og": 25.0}, {"y": -3455085, "oy": -3455085, "e": true, "c": 2027, "g": 25.0, "og": 25.0}, {"y": -4318857, "oy": -4318857, "e": true, "c": 2028, "g": 25.0, "og": 25.0}, {"y": -5398571, "oy": -5398571, "e": true, "c": 2029, "g": 25.0, "og": 25.0}], "dataType": ".", "displayAs": "line", "hidden": false}, {"label": "Linear Regression Revenue", "mappingKey": "linearRegressionRevenue", "data": [39952511, 35658563, 31364615, 27070666, 22776718, 18482770, 14188821, 9894873, 5600925, 1306977, -2986971, -7280919, -11574867, -15868816, -20162764], "dataType": ".", "displayAs": "line", "hidden": true}], "editableDates": {"2025": 36, "2026": 37, "2027": 38, "2028": 39, "2029": 40}, "properties": {"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	2.16	-2.41	-2.99	-3.73	-4.67	-5.83	-7.29
Revenue Growth Rate	-90.05%	-211.8%	-238.4%	25%	25%	25%	25%
Net Income	-32.96	-34.2	-2.21	-2.76	-3.46	-4.32	-5.4

Historical Values

amounts of USD except for #	Average	LTM	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
Revenue	18.54	-2.41	2.16	21.7	23.88	25.05	0.371	0.941	0.889	10.46	34.41	86.44
Cost of Revenue	14.29	-1.81	0.886	20.58	18.49	23.25	0.035	0.491	0.975	8.73	25.23	60.32
Gross Profit	4.22	-0.6	1.27	0.863	5.39	1.8	0.335	0.447	-0.086	1.73	9.17	26.12
Gross Margin	29.02%	24.89%	58.94%	3.98%	22.59%	7.19%	90.48%	47.46%	-9.72%	16.57%	26.66%	30.22%
Operating Income	-40.89	-62.53	-33.91	-23.59	-16.81	-13.21	-15.05	-7.58	-190.5	-99.09	2.23	10.24
Operating Margin	-2,404%	2,592%	-1,571%	-108.7%	-70.41%	-52.73%	-4,060%	-805.7%	-21,440%	-947%	6.48%	11.85%
Net Income	-30.84	-34.2	-32.96	-33.65	-13.63	-13.6	88.93	-25.23	-170	-102.6	-5.29	2.95
Net Margin	73.74%	1,418%	-1,527%	-155.1%	-57.07%	-54.27%	23,990%	-2,681%	-19,130%	-980.4%	-15.38%	3.41%

Historical Growth Rates

amounts of USD except for #	Average	LTM	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
Revenue	18.54	-2.41	2.16	21.7	23.88	25.05	0.371	0.941	0.889	10.46	34.41	86.44
Revenue Growth Rate	550.4%	-211.8%	-90.05%	-9.14%	-4.67%	6,659%	-60.62%	5.9%	-91.51%	-69.59%	-60.2%	-12.74%
Net Income	-30.84	-34.2	-32.96	-33.65	-13.63	-13.6	88.93	-25.23	-170	-102.6	-5.29	2.95
Net Margin	73.74%	1,418%	-1,527%	-155.1%	-57.07%	-54.27%	23,990%	-2,681%	-19,130%	-980.4%	-15.38%	3.41%
Net Income Growth Rate	96.14%	3.78%	-2.07%	146.9%	0.243%	-115.3%	-452.5%	-85.16%	65.71%	1,838%	-279.5%	-62.53%
Stockholders Equity	1,347	14.46	14,463	43.98	66.97	81.44	8.78	-92.44	-91.29	12.61	135	178.1
Equity Growth Rate	2,946%	-99.9%	32,780%	-34.32%	-17.78%	827.8%	-109.5%	1.26%	-824.1%	-90.66%	-24.17%	-1.84%
Return on Invested Capital (ROIC)	348.2%	-786.8%	-0.654%	-97.59%	-43.32%	-38.92%	4,573%	17.93%	349.7%	-146%	-0.796%	3.15%
After-tax Operating Income	-37.2	-62.53	-33.91	-23.6	-17.46	-13.29	43.89	-15.66	-190.5	-99.35	-1.46	4.72
Income Tax Rate	62.47%	0%	0%	-0.024%	-3.83%	-0.625%	391.7%	-106.6%	0%	-0.261%	165.5%	53.92%
Invested Capital	505.1	7.95	5,189	24.18	40.3	34.15	0.96	-87.35	-54.48	68.03	183.5	149.7