Replies to post #230791 on Lightwave Logic Inc (LWLG)

[Fiscall]

Assumptions


Revenue: $2B
Gross margin: 70%
Shares outstanding: 145M
P/E multiple: 30


P/E is based on net income, so we need to estimate net margin. For a licensing / IP model like LWLG, net margins could realistically fall somewhere between 30% and 50%.


Scenario 1 (conservative)
Net margin: 30%


Net income = $2B × 30%
= $600M


Market cap = $600M × 30
= $18B


Share price ˜ $18B / 145M
˜ $124


Scenario 2 (mid case)
Net margin: 40%


Net income = $800M


Market cap = $800M × 30
= $24B


Share price ˜ $24B / 145M
˜ $165


Scenario 3 (high margin IP model)
Net margin: 50%


Net income = $1B


Market cap = $1B × 30
= $30B


Share price ˜ $30B / 145M
˜ $207


Rough range with these assumptions


~ $120 to $210 per share.