Valuation for a 10-bagger?Number of shares fully diluted: 91 136 872
Lets speculate in this valuation that they succeed in completing phase 1 this year and the other phases the years ahead. Natcores fee for the 56.18 MW phase 1:
Engagement fee 1.5 MCAD
Cost plus 3.25 MCAD
Annual partnership participation (10%) 20 year term 18.6 MCAD
They have stated that they have the possibility to sell the total annual partnership participation at a slight discount. Lets say that they can sell that for approx 15 MCAD
Total income this year from the phase 1 would then be:
1.5 + 3.25 + 15= 19,75 MCAD
Profit 2017 approx 19,75M CAD/ fully diluted float = 0.2167 CAD/share in profit this year. Since they have the upcoming phases in the Vietnam project as well as other project in the pipeline, we might speculate that they might have a yearly profit from now on.
So what about a P/E value of a stock like this (if we speculate that they will have a yearly income)? Many fast growing companies have a P/E value of 100 and above. Lets be very conservative and assigne Natcore a P/E value of 20...
Then the stock would be valued at 0.2167 CAD x 20 = 4.334 CAD !!!
Thats right now based on the phase 1 in the Vietnam project... Imagine if they do the other phases in Vietnam, the other projects in pipeline, add other to this date unknown consulting projects, and last but not least:
Succeed in the lab and take the solar panels to market...
Talk about blue sky potential!!