RE:HEXO share price estimate...v2How can revenue per gram be $9.26 when they're selling 3.5g for $20 in Quebec ($5.7g), and this includes taxes and profit for the SDQC? Check out HELIOS.
Also, first year contract is 20,000KG... but that's minor compared to the $9.26 a gram dream
Reven
anm10M wrote: Updating my previous post based on the latest results:
- HEXO has a signed deal with the province of Quebec to supply 200 000Kg for a a period of 5 years...estimate value is 1 billion
- avg cost of production is $0.90/gram
- Revenue per gram...$9.26/gr
- HEXO has 182M shares outstanding
So if we average out the produciton over 5 years, that's 40 000Kg/yr (40M grams/yr)
Revenue = 40M x $9.26 = 370.4M
Cost of production = 40M x 0.90 = 36M
Est earnings= 334.4.8M
Est EPS = 334.4M / 182M = $1.84 / share
Using a conservative EPS multiple of 15, you would get
$27.60 / share. This does not include any other sales or JV...jsut trying to set a minimum baseline from what is already known/signed.
What am I missing here???? Seems HEXO is severly undervalued.
I welcome anyone's input/correction to the above.