$2,321,428,200 Revenues x .46 Net Profit Margin = $1,067,856,972 Net Profit
Now let’s derive an Earnings Per Share (EPS) using an OS of 2 billion shares:
$1,067,856,972 Net Profit ÷ 2,000,000,000 (OS) = EPS
.53 = EPS
Now, to determine where SNEY should be fundamentally trading upon the closing of this acquisition, let’s use a lower and more conservative Price to Earnings (P/E) Ratio of 12 to use as the multiple or the growth rate for the Industry or Sector of which SNEY trades up under:
12 P/E Ratio x .53 EPS = SNEY Fundamental Share Price of Trading
$6.36 = SNEY Fundamental Share Price of Trading
This means that when the closure of SNEY acquiring 100% of Allied Mining and Supply, LLC, it should ”fundamentally” trade at $6.36 per share.
I’m not saying that SNEY will go to $6.36 per share immediately or if it would ever get to $6.36 per share, but I am simply saying that SNEY is still significantly undervalued at these levels, especially if they close the acquisition. Even if you max out the AS to be the OS to use with this equation, you would still get SNEY to be trading at a fundamental share price of still north of $3.00+ per share.
