SP Analysis- What are your thoughts on the followiI did some number crunching and here is my analysis.
Feel free to make suggestions.
Current Shares outstanding: 114,900,000
Our current revenues call for approx $48million/yr
Assuming settlements are as follows over 5yrs.
low: $250million
medium: 350million
high: $500 million
Therefore, annual revenues are as follows
low: $48+$50=$98million
medium: $48+$70=$118million
high: $148million
Assuming litigation costs are coming down significantly, im pegging annual expenses at $20million.
Therefore earnings after expenses are:
low:$78million
medium:$98million
high:$128million
Earning/share are as follows:
low: $.68/share
medium: $.85/share
high: $1.11/share
PLUS Cash of $200million is $1.74/share.
Assuming a conservative multiple of 8x since we know earnings are guaranteed for the 5yrs, plus any other settlements and growth in the sectors.
we get share price of following:
low: $7.17
medium: $8.56
high:$10.65
Assuming a 10x multiple, we get the following.
low: $8.53
medium: $10.27
high:$12.88
In my calculations, I didn't put any value on our patents. This is strictly based on earnings.
Let me know your thoughts.