Smiles, i'm no expert in this area but i'll have a go others in the know please help me out if i'm wrong.
Lets say P&G have a total revenue stream of $250mill (1,712,328 units @$146) and we receive a 5% royalty rate on gross sales. The P/E ratio of the sector is 21 according to commsec. The number of shares on issue is: 1,519,469,730
royalties: $12.5mill*P/E= $262.5million
Addition of the S/P= 262.5mill/shares on issue
+17.3cents to the current SP
Whether or not sk-II can sell that many units who knows but either way with only $12.5mill in royalties for the year we can see an additional 17.3cents added to whatever the SP is at the time.
OBJ Price at posting:
9.8¢ Sentiment: Hold Disclosure: Held
(20min delay)