5% Royalties model now split between Nano and Worley Now Nano needs to share their piece of the pie with Worely.
Let's say Worley gets 1.5% and Nano gets 3.5%. That has a major impact on profitability.
2035 timeframe:
TAM = $15B, Target 10% market share, 5% royalties, BUT!!! Nano only gets 3.5% of those royalties!!
Total gross sales = 1.5 billion
3.5% royalties = $52.5 million
10.5 million to run and grow business
10.5 million taxes
Nano is left with $31.5 million profit.
Assume we will be at 150 million shares outstanding by 2035 so $0.21 per share.
PE of 40 gets us to $8.4 per share.
That's not accounting for any debt financing.
So maybe a $8 share price in 2035!?
Wow...that's not in agreement with the dream that has been sold to investors by the bulls on this board.
oh well. Still a pretty good return if you ask me. And certainly some upside potential and a pretty asymmetric to the downside potential.
good luck to all the longs.