Current Fair ValueWith this new contract, the revenue run rate will be about $15 million per year, with net earnings in the $0.20 range.
With a solid balance sheet and very strong growth profile, peer multiples of 15 times net earnings would generate a fair value. Of about $3 per share.
This is very conservative as it does not include any revenues from the Medline distribution deal nor from the other distribution deals recently signed.
These will begin to generate additional revenues this quarter and could easily double the net earnings run rate ..