Ann: Pilot Production Line Established & $1.25m Grant Received, page-30

I wrote a post just over 3 years ago with my forecast share price for EMV when it is in production. I have updated the post a little and here it is again. I have continued with very low estimates.

Scanners sold per year. -- 5000. This is 3.5% of the western world ambulance and stroke ward market. Probably very low but let's be prudent.

Average price per scanner. ---$100,000. That assumes $150,000 for EMU and $75,000 for Gen2. We will sell a lot more Gen2, hence the average price of $100,000. I have used $A just to keep it simple

Profit margin after tax. -- 19%. This is similar to or lower than COH, RMD, FPH, and CSL

These numbers when multiplied (5000 x $100,000 x 19%) give a profit per year of $95 million. There are now around 85 million shares on issue. Adding existing options and performance rights could give a total number of issued shares of say 95 million.

So, $95 million profit with 95 million shares gives an earnings per share of $1.

Assuming a Price Earnings Ratio of 30. This number is low compared to COH, CSL, RMD, FPH and in view of the potential growth could be a lot higher. Multiplying earnings per share of $1 times PER of 30 gives a forecast share price of $30.

I know I have ignored earnings from consumables and currency exchange. My aim is to give a forecast share price once we get the regulatory approvals and are ramping up production.