Replies to post #21334 on Players Network Inc. (fka PNTV)

[prof]

Estate

Let's start with a simple equation

share price = revenues : outstanding shares

It's actually more complicated than that, but it's a good starting point.

PNTV has just over 500 million outstanding shares - let's use 500 million - easy round number to work with.

So
500 million in revenues divided by 500 million outstanding shares would yield ONE dollar as a share price.

Two things I owuld like to point out:

1) Growth gives us something called "Earnings Power", or EP. This "multiple ranges from a low multiple of 2-3 to a high multiple of over 10.
Because PNTV will probably have exponntial growth in the beginning, I think we can adjust with a HIGH multiple, which means we can multiply the share price by as much as 10.

2) It's all about the revenues, when determioning share price. So costs such as taxes, R $ D ( research and development) take away from the bottom line of the company's profits, but do not so much affect the share price.
When rev's start coming in, you can watch the pps ( price per share) go up.

For now, it's the "forward looking revenues" that are interesting for investors - you could see they see the writing on the wall, and might choose to get in before the rev's start to push the pps up.

prof