Hey Hunterr,
Iamready is totally correct in calculating the share price given your parameters. I tried to show the formula twice but obviously my computing and editing skills are very limited.
To put it another way (Net profit $30 million divided by 3 billion shares) multiplied by P/E ratio of 15 equates to 15 cents per share.
Its important to note that using this method on its own to determine intrinsic or fair value isn't a sure-fire way of analysis but it is one tool I use to help work out if I'm potentially paying too much for a stock. I was hoping to illustrate there is money to be made in this stock if all goes well but it turned out to be a jumbled mess.
Hope this helps
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- July 1
Hey Hunterr,Iamready is totally correct in calculating the share...
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