I would love Rap to get to $1 But what would be required? Below is my take on the situation.
At $1 market cap would be ~ $ 660 million
At P/E of 15 ( ASX all ords avg) Earnings would be 660mill /15 =$ 44 mill.
At margin of say 60% ( probably low as always quoted as very high margin product)
then sales would have to be 44 mill / 0.6 = $73 mill
Sales price has been quoted as between $5 and$10 say $7.50
then to get sales of $73 mill would require 73 mill/7.5 = 9.7 mill visits.
Taking Ping An as an example with 500000 visits per day and assume 30% cough related =150000/day.
Then to get $1 /share out of Ping An would take 9.7 mill/ 150000 days = 65 days.
What's not to like ???
Assumptions are all mine alone. Please use your own.
RAP Price at posting:
10.5¢ Sentiment: Hold Disclosure: Held