Telkonet Inc (TKOI)

[wplong89]

Okay so $50M revenue in 2018 with an operating margin of 10% leaves us with about $5M in profit before interest and tax. If we assume an annual $500,000 in interest expenses and a 30% average tax rate, net profit falls to a little over $3M. I think the company could fetch a solid P/E ratio if the revenue growth target is hit. .60-.80 a share seems reasonable if goals are hit. If the company falls short of their goals, with less revenue and smaller margins, the stock price will not move much over the next three years.