Enzolytics Inc (ENZC)

[God_Father]

There are definitely unknown variables in doing a valuation regarding (costs, P/E, etc). We don't know what the costs are but ballparking it, I think 70% gross margins probably make sense, I don't see the cost more than $10/SKU including freight/duties. I agree, only entitled to 50% of earnings based on the business structure. In a 1% market capture scenario of just ITV1 I would the say $5-$8/share. That would imply $2.4B in revenue per year, and a market cap of $18B. You don't get to those numbers over night, that's multi-year growth of a distribution network, advertising, consumer education, etc.

Same can be said with the HIV mAb projections, while promising, they provided an earnings proforma but I don't think a royalties licensing % was ever assumed. If the royalties is 25%, then at peak year (5), the entitled earnings would be $2.5B/yr vs the full $10B.

Eitherway, it's the evergreen exercise that's important. A lot of people just come up with an arbitrary number as to what they expect the pps to be without doing at least a behind the napkin calculation.

$ENZC