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ImOnABoat

09/13/10 11:06 AM

#8197 RE: Digra Ive #8185

If CWRN pulled the projected 100M in revenue:

In one of their previous PRs they cinsidered around 40% profit margin, it's a bit high, in my opinion, so let's say it will be 30%. So the actual profit would be 30M.

Now, the last update on the OS was at 2.1B, so earnings per share (EPS) can be calculated at 30M/2.1B = 0.014 per share.

The companies that have high shareholder confidence trade at 20x - 30x of their EPS. In CWRN's case, 10x should be reasonable, so a fair PPS for this company, given 2.1 OS and 100M revenue, is around 14 cents per share.