Intellipharmaceutics International Inc. (IPCI)

[fabius]

Hei Tek,
I'm not sure about your estimations, but anyone fell free to correct me if I'm wrong in what I'm writing here down. I get a value that is double yours.

If you start from revenue/sales, you can try to determine EPS (and some suggestion on how to possibly arrive there have been proposed in this board), then you go for a P/E multiple . you should try in a range between an iper-conservative 12 and an aggressive 25.

So let's use your ipotetical 300Mln of revenue for 2017: let's say that we arrive at 50mln of Net earnings from that (16% of revenue = net income margin).

now with a p/e of 12 (and this is conservative for a growth company)and 28.6mln shares we get

eps = 50Mln/28.6mln = 1.74

for a p/e of 12 you need a price per share of 1.74 x 12 = 20.9pps
so reversing your reasing, for a 10 dollar target you would need a 150Mln revenue.

with 900Mln of revenue, and 16% net income margin (144mln of earnings), 12 p/e : 60pps

I repeat myself: I can be wrong in the above calculation; more than happy to hear what Others think about it.