# Valuation Framework

## Workforce Valuation

### Rationale

We have 600 talented workforces and are growing. Our quota partners have paid each workforce 9,000THB each month for a one-year contract. In practice, we obtain 600 workforces to engage as data labelers for a cost of 0THB. How much productivity value can these workforces offer Vulcan in the future?

### Assumption

* Minimum productivity value per one workforce = Annual wage = 108,000THB
* Workforce annual growth rate (First stage: year 1-4) = 50%
* Workforce annual growth rate (Second stage: year 5-n) = 0%
* Discount rate for DCF = 10%

### Valuation

We use the DCF model to calculate the company's valuation based on workforce productivity.

$$
\text{1st-stage value}=CF\_0\cdot{\dfrac{1-\dfrac{(1+g\_1)^n}{(1+r\_1)^n}}{r\_1-g\_1}}
$$

$$
\text{2nd-stage value}=CF\_0\cdot{
\dfrac{
(1+g\_1)^{n-1}(1+g\_2)
}{
(1+r\_1)^n(r\_2-g\_2)
}
}
$$

where

$$
CF\_0 \text{ is the initial cash flow at the end of the period}
\g\_1, g\_2 \text{ are growth rates in stage 1 and stage 2, respectively}
\r\_1, r\_2 \text{ are discount rates in stage 1 and stage 2, respectively}
\n \text{ is the number of periods in stage 1}
$$

Total valuation based on the workforce valuation method is:

$$
\text{1st-stage value}=(108,000\cdot600)\cdot{\dfrac{1-\dfrac{(1+0.5)^4}{(1+0.1)^4}}{0.1-0.5}}
$$

$$
\text{2nd-stage value}=(108,000\cdot600)\cdot{\dfrac{(1+0.5)^{4-1}(1+0)}{(1+0.1)^4(0.1-0)}}
$$

$$
\text{Total value}=398.16M + 1,493.75M = 1,891.91M
$$

## Token Presales

* We will pre-sell 20 million (26.3 percent) Vulcan tokens
* At a price of 9.87THB per token
* The estimated fundraising total is 98.7MTHB
* The project is valued at 375MTHB in total
* It's a 80% discount from workforce valuation
* Vulcan Workforces are our most valuable asset (600 and rising at an exponential rate each year), not mention valuation of Vulcan datasets, [Vulcan AI](https://docs.vulcancoalition.com/etna-lab-research-and-development/text-to-speech-ai), [Vulcan Platforms](https://docs.vulcancoalition.com/etna-lab-research-and-development/vulcan-platforms), Vulcan Products and Services ([Edio Book](https://docs.vulcancoalition.com/vulcans-ai-products/vulcan-edio-book), [Depression Detection AI](https://docs.vulcancoalition.com/fundamentals/broken-reference), and [Home Automation AI](https://docs.vulcancoalition.com/vulcans-ai-products/home-automation-ai)).