UBS Sell and $17 target!, page-239

I can see the logic and certainly looks good written with those variables.

Using the same assumptions for current state 5b in sales at 2.3% net margin = 120m. Which is your example is net profit after tax.

If they were achieving that i'd be much more interested/believer in the exponential or growth projections. Certainly don't think such net profits are out of the realms in the medium term either once ad-hoc expansion expenses subside and as you reference sales cost aren't linear.

Regardless even on that P/E ratio of 20 or 40 a 120m profit today would be 2.4bn or 4.8bn. So even on a healthy growth P/E of 40 that projecting that net margin (which is a healthy one) and would still have the company valued 2-4 times current MC.

Cheers for the objective response - I'm not saying your assumptions or calculations are wrong either just opposing views which is good for readers.

SF2TH