Let’s presume that ANDI generates the $100,000,000 Revenues that they have projected as indicated within the link above and consider their OS to be 2.6 billion shares. Let’s presume a 25% Net Profit Margin. Now we can consider the valuation thoughts below to derive an Earnings Per Share (EPS) and then a share price valuation…
$100,000,000 ANDI Revenues x .25 Net Profit Margin = $25,000,000 Annual Net Income
Net Income ÷ Outstanding Shares (OS) = EPS
$25,000,000 Annually ÷ 2,600,000,000 Shares ANDI OS = .0096 EPS
However, I will use 20 as a more conservative PE Ratio.
Please understand, if one chooses to consider a lower number or a higher number, simply use the Substitution Property to replace such variable or any other variable to what you might choose to believe is a more fair variable to consider. Now consider below…
EPS x P/E Ratio = ANDI Share Price Valuation
ANDI EPS = .0096 Telecom Equipment Industry Conservative P/E Ratio = 20
.0096 EPS x 20 P/E Ratio = $.192 ANDI Share Price Fundamental Valuation