RE:RE:RE:Vranic upgraded price target for PKK today, 0.50 centsThanks lscfa.
You seem to have a different formula than the one that Mr Vranic used. I am quoting Mr Vranic's numbers from his article as follows. Please do correct me if I am wrong. Thanks.
The article had the following table:
2016 2017 2018
Revenue 100 250 515
Gross Profit 12 30 62
Corporate Expenses 5 10 15
EBITDA 7 20 47
The article went on and said:
"
Peak projects to be an incredible growth story. I believe that a 10.0x EV/EBITDA multiple on 2018 projected EBITDA discounted annually at 15% (47/1.15^2 = 35) is a reasonable basis in which to derive a valuation:
"
Mr Vranic illustrated how "2018 EBITDA @ 15% Discount Rate" was calculated. Plugging in the numbers that Mr Vranic provided for 2016, "2016 EBITDA @ 5% Discount Rate" (since Corporate Expenses for 2016 is 5) is (7/1.05^2) = 6.35
Then EV/EBITDA Multiple @ 10.0x = 63.5
Per (fully diluted) share valuation = 63.5/700 = $0.09
The reason I am doing this calculation for 2016 is to understand the picture for 2016. No one will know what is going to happen tomorrow in this world .... I don't think it's too realistic to trade based on numbers in 2017/2018 especially for China.