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Jimmy Quick

06/06/07 9:50 PM

#89 RE: thekid22 #88

Using my old calculations here is my best go at it.

If anyone has any disputes, please let me know, like I said, I am no expert here. Still learning this stuff. Of course these numbers also exclude hype and demand. One other thing I am uncertain about is yearly service and maintenance fees for our company. I haven't seen Edward mention these anywhere, but these would definately bring up the net profit margin to a higher %. Also, the more we sell, the greater the profit margin due to not as much of an increase in S&G costs. I haven't factored any of this into my calculations below.

$175,000,000 x 15% profit margin = $26,250,000
Outstanding shares = 50,000,000
EPS: $1,875,000/50,000,000 = .5250/share
Assuming a PE ratio of 25 unsure (10-40 market range)
.5250 * 25 = $13.125

$175,000,000 x 20% profit margin = $35,000,000
Outstanding shares = 50,000,000
EPS: $2,500,000/50,000,000 = .70/share
Assuming a PE ratio of 25 (10-40 market range)
.70 * 25 = $17.50

Assuming that we would have a larger profit margin as Selling and General Expenses would not increase at the same rate as revenue.
$175,000,000 x 30% profit margin = $52,500,000
Outstanding shares = 50,000,000
EPS: $5,000,000/50,000,000 = 1.05/share
Assuming a PE ratio of 25 (10-40 market range)
1.05 * 25 = $26.25