Elite Pharmaceuticals Inc (ELTP)

[The ELTP King]

Epic was purchased for $706 million in today's dollars with just over $120 million in revenue per year.

Being conservative, Elite will have $40 million in revenues over the next year. (It will be much more)

1. We don't know how much debt or cash Epic had. But we do know Elite has more cash than debt.

2. Epic had a pipeline. Elite also has a pipeline.......with Needle Movers.

3. Epic's facility is exactly twice the size of Elites - 110,000 sq ft vs 55,000 sq ft. However, they have 200 employees which is nearly QUADRUPLE the amount Elite has at 53, so much more expensive in terms of employee salary.

Conclusion:

- Using the above, all things being roughly equal except for revenues, Elite's *CURRENT CONSERVATIVE* valuation should be exactly 1/3 of Epic's buyout price, because they have 1/3 of the revenues.

- So $706 million divided by 3 = $235 million.

- In other words, roughly 21 cents per share.

At 10 cents, that $112m valuation.

Can anyone show the metrics as to how Elite is properly valued, undervalued or over valued?