i wouldn't expect earnings anywhere near 100 mill until we can tackle the discrete market.
These are all very rough calculations, but if you
- assume the 1.5% royalty - assume a very generous annual embedded market penetration of $1 billion a year by 2025 - assume 25 new solutions per year for embedded memory - assume an NRE payment of 0.5mill each
income from licensing = 0.015 X 1 bill= 15 mill
Income from NRE = 25 X 0.5mill = 12.5 mill
Royalty + NREs = $27.5 mill with an extremely generous set of assumptions.
assume a PE of 50 and you have just under $1.5 billion, where we already sit.
Keep in mind the value of future discrete isn't included in the above. Once we have a discrete solution the above numbers get blown out of the water and there should be a pretty extreme revaluation to the upside.
All of the above is my opinion and I'm more than happy to hear opposing views. I'd particularly appreciate opposing opinions with some rough numbers.
WBT Price at posting:
$8.69 Sentiment: Hold Disclosure: Held
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