RE:1 billion in sales = stock price?First off, future growth potential will always have this stock trading substanially higher.
For 1 Billion in sales @ 30% profit = 300,000,000
300,000,000 x P/E 30 = 9 Billion Dollar Market Cap
9 Billion Dollar Market Cap Divided by 195,000, 000 shares outstanding
= Share Price of $46.
This is a very conservative estimate for revenues. Revenues in 2020 could be in the neighborhood of 3 Billion dollars which would support a stock price upwards of $125-$140 assuming a 30% profit.
Future is bright.
I hope this helps, and I hope my numbers make sense.
stockhousestree wrote: Hi,
I am a little confused with the stock price. If this company does 1 billion in sales in rec then what valuation would the stock price be? I am assuming 500million in sales yearly would make this a $50 stock? am incorrect? since i have NO idea.
Thank you