RE:the Pooet downgraded??Those analysts are cowards who will not offer a TP beyond 12 months. At least Zacks is not so short sighted....
POET’s business model would make it similar to fabless semiconductor companies. Third parties would provide the production of its devices and we expect it would have margins similar to those companies below. They now trade at a lower valuation resulting in an average of 6.8xs enterprise value to estimated 2022 revenues. Currently, POET trades at an enterprise value of $110 million using a fully diluted share count. We need to look further out to where we think revenues would be by 2025. If we say the joint venture can reach $200 million in revenues by then and the rest of the business can ramp to $100 million that would be $200 million in revenues for POET in 2025. Using 6.8xs gives us an enterprise valuation of $1.36 billion. The company recently raised money so we are adding those 1.8 million shares to the total ($5 million at C$3.81 per share.) For the valuation, we calculated the company’s fully diluted share count using the treasury stock method at 43.0 million fully diluted shares outstanding and added 1.8 million shares for the recent raise.
$1.4 billion divided by 44.8 million shares is US$30.36 per share by 2025. This would be a present value of US$13.82 or CN$18.05 per share discounted by 30% per year.