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rpg101

06/30/09 9:43 AM

#880 RE: zagdad #876

zagdad, my math works on my expected PE. It includes alot of assumptions that may or may not be correct:

- 1000 franchises generating $1000 per day in royalties = 300 million in royalties a year. Royalties are 99% pure profit. on a 20 PE = 6 billion company value. My math was on a conservative 10 PE, giving it a 3 billion value from the P2O business
- 10 million tapes/year @ $22 a piece = 220 million, on a 30% margin = 66 million profit/year, on a 20PE = 1.3 billion value

You welcome to change your assumptions, $80 maybe too high, but 2 digits PPS is almost 100%