Valuation
Hi Guys,
can some of you please share your valuation methodology for D-Box?
For example, if we made a million per quarter, $4M/year, that would yield and EPS of about 2.3 cents ($4M/167M shares outstanding). If you put a P/E of 20 on it, the stocks would be valued at 48 cents.
On the other hand, in order to be valued at, say, $1.00 per share, with a very generous P/E of 30 times, we would need to make about $5.5M in net profits. If we can achieve a 10% net margin, that would imply $55M of revenues, about 2.5 times (250%) today's rate. If we grow our top line by 20%/year, that would take about 5 years....Of course, I would be more than willing to hold the stock 5 years for a 400% return. I would love to hear from the board.
What are your estimates?
Thanks.