Replies to post #89 on eFotoXpress (EFOT)

[Jimmy Quick]

Had a typo in my post.

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

SHOULD BE
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: $52,500,000/50,000,000 = 1.05/share
Assuming a PE ratio of 25 (10-40 market range)
1.05 * 25 = $26.25