RE:RE:RE:John Wallace OP-ed Chicago TribuneMarky1 wrote: Thank you Popeye! Great find...My question, to anyone here, when they say evaluation is 3$.....What time frame are they talking about?? Thank you!
Hello Marky. Crow said one year. This is normally a good benchmark, but that time frame usually applies to seasoned companies with established records of earnings. For these stocks, analysts typically look at 12 month trailing earnings, divided by the number of outstanding shares, and multiplied by a factor to reflect continued earnings/growth. Historical averages (this factor) for most exchanges is approx 15-16x. Varies with the company/current market sentiment.
But Antibe is not a seasoned stock. It has no current or expected near term earnings. There are no quantitative metrics to establish near term share price. I suspect that posted target share price is based on net present value (that is, expected future earinings, risk adjusted, and discounted to present value) over a much longer time frame, i.e., the length of the patent. Don't know. Tried unsuccessfully to research this. No luck. But nothing else makes sense.
So don't get hooked on the timing of analyst's share price. My best guess is that it is an estimate of current value of the company based on NPV. May or may not reflect the value that the company could sell for today. But almost certaintly to change with time. Just my opinion.