Notes on Future Share Price
I'm sure many of you are wondering what this stock will actually be worth once news comes out about how much money the company is making. I'm going to show you some quick calculations to find out what the ideal share price (no pun intended) would be based on those numbers. Please remember that the actually price will fluctuate and likely reach a peak well above this number (sell then), but this is probably about where it will reach equilibrium over time.
Studies have shown that the average P/E ratio is a little over 20. One way to interpret this is as follows: at any given moment in time, a company is worth about 20 times the money it can make in a year. This is also the rule of thumb for acquisition of a company, though that usually comes with a premium.
So let's say that IFSL can make at least 12.5MM per year, as claimed. For the sake of this exercise we'll assume that 10MM of that is actual profit or earnings. With 8.5B shares, that's $0.0011765 per share. With a healthy P/E ratio of 20 (and that's on the conservative side, really), that would mean a share price of 0.0235, which would make most of us pretty rich at this point.
Remember, we have no idea yet how much money this company makes, but if it in any way reflects the PR they've been putting out, then you all have good reason to be as excited as you are.
-E