Sunday, July 18, 2021 5:25:51 PM
$0.445 today
$0.66 1 year
$1.00 2 years
$1.50 3 years
$2.25 4 years.
If it stayed at 1.7x is just an example. It is very unlikely that it would stay that low if the company grows at 50% per year. For the precise reason that investors plan to hold 10 years and would pay a premium for a fast growing company. A fair price would be 4x-6x
And then it would grow 50% per year at that multiple.
To make the math easy, 4x is $1.00 give or take...
So
$1.00 today
$1.50 1 year
$2.25 2 years
$3.37 3 years
$5.06 4 years
In 4 years this is logically $2.25 to $5.06 no hype. Just raw growth numbers based on what they likely can achieve in this industry.
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