RE:RE:RE:RE:RE:$5.00 yr endIf we are talking about Mining Sector it would be base on the life cycle of the mine after it is determined by the feasibilties report (drill results) which can be 10X. 20X, or even 30X.
For techs, that is a different beast, take a look at Facebook. 2.9 billion in revenue with 2.55 billion shares out. And the share price is at $64.32. So the idea here is that someone (banks?brokers?, etc?) thinks that FB may be here for more than a hundred years or forever therefore 60X is just. But according to their P/E ratio it is 98.03.
For IB, I don't think we are in the same as FB. However, Alcoa would be of similar which is at $11.21 with a billion shares out and base on the sales which is 290 million net income which does not justify the current share price. It is about 38X and their P/E ratio is 41.12.
So base on that 20X is possibilty fo IB?
IB contract = $50 million / 89 total outstanding shares = $0.56 x 20 = $11.23*
* I believe the 20X will only take place once we get a consistent number of contracts; otherwise, we may sit at $1, $2 to $4?
JMO. Have a great weekend everyone.
The P/E is sometimes referred to as the "multiple", because it shows how much investors are willing to pay per dollar of earnings. If a company were currently trading at a multiple (P/E) of 20, the interpretation is that an investor is willing to pay $20 for $1 of current earnings.