Well, I can understand that’s something all PYC SH would be interested in. But I’m no accountant nor financial expert. So my bumbling attempts at valuation are probably way out and unrealistic. However, if someone would be good enough to point out my errors I’d be glad.
So I start by only considering the revenue from the PKD treatment (assuming that it’s effective). I assume that the market is limited to the 330,000 patients in the USA and that the company receives US$75,000 per patient. That gives gross sales. I then deduct 20% as “Cost of Sales”, leaving a taxable income, which incurs a tax of 30%. 90% of the Net Income is paid out as dividends. There are 4.666 billion shares on issue. So the dividend I estimated was 267 cps. If we assume a good dividend paying share on the ASX generates 6% FF dividends, then that implies that one share of PYC would be valued at about US$44, or AD$68. The MCAP of PYC would be $319 billion. As the MCAP of CSL is “only” $136 billion my estimate is likely incorrect. If the treatment was licensed out for a 10% royalty the result would still be life changing.
PYC Price at posting:
8.5¢ Sentiment: Hold Disclosure: Held
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