Originally Posted by
NewGuy
Ok, I'll bite. Please note that this is completely back of the envelope!
1. According to PEB, the gross margin on cx bladder in the states is 81%, so $100m revenue = $81m GROSS profit.
2. Assuming fixed costs of - say- $20 million, that gives net profit before tax of $61m.
3. Next, assuming a forward looking PE of (say) 25 - which is more than reasonable for a growth stock like this - I get a market cap of about $1.5 billion.
4. Since about 318 million shares have been issued, this translates to about $4.70 per share.
HOWEVER, this is really just a valuation of CX bladder, not PEB. If they can crack cx bladder in the states, the door will be wide open for all the other products that they have in the pipeline. If those can also be successfully commercialised, then a future value of (say) $10 billion is not unfathomable, and this would translate to a share price of $30+ (ignoring splits etc).
Makes 80 cents look quite cheap, right?