RE:RE:RE:RE:Stock is still in an upward trendI did my calculations on Feb 15th. I used a discount rate of 8%.
I also completed the worst case scenario and normal case scenario. So keep in mind this doesn't include yesterday's EPS numbers which would make this scenario even look better.
For the worst case scenario:
I said 10% growth over the next 5 years and 5% between years 5 to 10, with an anticipated PE ratio of 50 in the final ten years. Worst case scenario gives me a present day value for VLNS at $7.79
For normal case scenario:
I said 20% growth over the next 5 years and 10% between years 5 to 10, with an anticipated PE ratio of 30 in the final ten years. Worst case scenario gives me a present day value for VLNS at $9.31
In summary, prior to yesterday's results my justification for holding this stock is that I valued it between $7 and $9 based on this model. Like i said i have used this model for other stocks too.