Editing Augmentum Fintech PLC (section)

== Appendix ==

=== Relative valuation approach ===

As noted earlier in this report, research suggests that in terms of estimating the expected return of an investment over a period of 12-months or more, the approach that is more accurate is the discounted cash flow approach, so that's the approach that Stockhub suggests using to determine the estimated value of the company (the valuation based on the discounted cash flow approach can be found in the valuation section of this report); nevertheless, for completeness purposes, separately, the valuation of the company is also estimated using the relative valuation approach.

==== What's the expected return of an investment in Augmentum Fintech using the relative valuation approach? ====

The Stockhub users estimate that the expected return of an investment in Augmentum Fintech over the next year is 51%. In other words, an £1,000 investment in the company is expected to return £1,513 in a years time. The assumptions used to estimate the return figure can be found in the table below.

==== What are the assumptions used to estimate the return figure? ====

{| class="wikitable"
|+Key inputs
!Description
!Value
!Commentary
|-
|Which type of multiple do you want to use?
|Price/NAV
|For Augmentum Fintech, given its nature as an investment company, Net Asset Value (NAV) is arguably the most relevant metric. 
|-
|In regards to the price/NAV multiple, for the NAV figure, which year to you want to use?
|Year 5
|The most recent NAV figure is Year 5 (from the incorporation of the company), so the Stockhub users suggest using that year.
|-
|In regards to the price/NAV multiple, what multiple figure do you want to use?
|1x
|In Stockhub's view, Augmentum Fintech closest peer(s) is ccc.
|-
|What's the current value of the company?
|£138.83 million
|The valuation of Augmentum Fintech is £138.83 million as of 1st November 2023, according to Google.<ref>https://www.google.com/finance/quote/AUGM:LON?sa=X&sqi=2&ved=2ahUKEwiEw-r14KKCAxX1S0EAHVoFC94Q3ecFegQIHRAf</ref>
|-
|Which time period do you want to use to estimate the expected return?
|Between now and one year time
|The Stockhub users suggests between now and one year time.
|-
|Which valuation recommendation method do you want to use?
|Relative
|There's two main types of valuation recommendation methods, relative and absolute. The relative method determines the investment recommendation relative to other investments (e.g. the investment is "suitable" if it's within say the top 10% of the investment universe in terms of investment returns), whereas the absolute method determines the recommendation based on a fixed return amount (e.g. the investment is "suitable" if it returns 50% or more).  Assuming sufficient data, the Stockhub users suggest using the relative method.
|-
|Which top proportion of the investment universe constitutes a "suitable" rating?
|10%
|The proportion depends on the user's preference. That said, typically, the higher the proportion, the higher the risk associated with the investment.
|-
|Which universe of investments do you want to use?
|All investments
|If the main objective of the user is to maximise investment returns, then the Stockhub users suggest using 'all investments' as the investment universe.
|}

==== Sensitivity Analysis ====

ccc