Solar Integrated Roofing Corp (SIRC)

[Mr muse]

I ran my own numbers on this again, comparing typical company valuations based on margins for the industry, growth rate, revenue and shares outstanding, using these values, margins of 30-40%, growth of 50% year over year, 350MM shares, i made my low end estimates for different revenues.

I’m estimating a multiple of 7x to 10x and posted my reasons on ST, but basically this is through a lot of research I’ve been doing on company valuations based on similar growth and margins.

For 100MM revenue, $2 to $2.85
For 125MM revenue, $2.50 to $3.57
For 150MM revenue, $3.00 to $4.28

The first number is 7x multiple, and the second is 10x. Both of these are very reasonable for a company growing at this rate and with the margins on the products and services they sell.

These should be solid by next May, but with any hype or investor demands, it could see these prices sooner.

Based on the reports, we will know if they are over or under. If growth rate is higher quarter after quarter, the multiple could be higher. If margins are better and they hit profits and positive cash flow, they will see these multiples again on the higher revenue numbers.