Noble Environmental Technologies Corporation (NET), is an early‐stage market disruptive and innovative technology company founded to commercialize ECOR®‐branded products and processes. ECOR® is an environmentally-friendly alternative to traditional wood, fiberboard and other composite panel products. ECOR® uses a variety of sustainable 100% recycled post‐industrial, post‐consumer and agricultural by‐products and requires no adhesives in the wet forming process. The resulting product is an extremely strong, remarkably lightweight, non‐toxic and versatile material with significant profit potential along with a host of positive economic, social and environmental implications.
Noble Environmental Technologies (NET) has developed a patented composite process to convert waste fibers into ECOR® materials which are highly versatile, durable and capable of being shaped and molded to any specification.The ECOR® brand is 100% recycled, non-toxic and four times stronger than traditional fiberboard while weighing 75% less.
NET is interested in developing ways for rapid growth to introduce this revolutionary technology into the market while providing a strong return to investors.
To assist NET in analyzing the feasibility of the licensing model, Team ECORp used the San Diego manufacturing plant as the beta test case to determine valuation. We utilized projected sales and costs to determine the expected NPV, IRR, Profitability Index, Gross Operations Margin, Terminal Value, and Payback ratios as a baseline. Should demand and sales meet expectations, NET has a very strong financial argument to manufacturers for a licensing model. This was reflected with an NPV in excess of $5.5 million and payback period of less than two years.
We then created several scenarios to determine the effect they would have on the financial projections. The sensitivity analysis demonstrated that raw material price fluctuations do not have much effect on the overall value while demand, price discounting and product types have a major influence. We find that value per square foot of WaveCor™ in each product is a driving force affecting financial results.
Sustainable Brands Sustainable Brands is a learning, collaboration, and commerce community of forward-thinking sustainability, brand, and design professionals who are working to leverage sustainability as a driver of business and brand value. We recognizing that brands today have a unique role to play in focusing corporate energy and also influencing culture. Sustainable Brands serves as the bridge that accelerates the successful shift towards a future of better brands and a sustainable economy.