Some what if analysis to put the current market cap in perspective:
Assume
- 35mtpa (and no ramp up)
- operating margin/t (a) $25, (b) $35, (c) $45
- Shares on issue 2B
EBIT pa from FY11
a) $0.9b, (c) $1.2b, (c)$1.6M
Assume
-PE 8
-tax 30%
-90% ownership
Market cap
a) $4.5B, b) $6.2B, c) $7.2
or sp price range $2.25 t $3.97
Conclusion: SDL's high risk correlates to high potential return.
