Replies to post #115 on Platinum Research Organization, Inc.(fka PLROQ)

[rocketrice]

Stop it--you will cost more innocent people more of their hard earned money. Stop while you are ahead. People like you cost me hundreds already---you will pay one day

[speckulater]

PLRO Valuation Pt. 2

In Post # 115, it was presented and shown that based on Market Cap alone, PLRO could have a theoretical fair value of $7.55 per share. This post will look at the theoretical value of PLRO based on the Revenue Model. Every one needs to understand that I am not saying PLRO will have this certain amount of Revenue, or share price. This is merely an attempt to look at the possible future value of PLRO.

We know that the potential sales market for PLRO is $56.8 Billion. Being conservative, say that in a few years, PLRO has gained 5% of that market share. That is Revenue of $2.84 Billion. Just using Revenue of $1 Billion:

$1 Billion * .25 = Net Income of $250 Million

$250 Million / 102 Million shares = $2.45 Earnings Per Share

$2.45 EPS * Multiple of 20 = $49.02 share price

Using Revenue of $1 Billion is very convenient for comparing actual Revenue numbers. For actual revenue of $3 Billion, just multiply the share price by 3. For actual revenue of $100 Million, just divide the share price by 10.

Remember, PLRO based on Market Cap alone, can be argued to have a fair value around $7.55.

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