" ILMN has a market cap of 22 billion and they earned 2 billion last year, representing a year over year growth rate of 163%".........
Wait a minute.
They generated revenue of $2B. They earned $350M.
It seems to me that paying $22B for such a company is too much. Twice as much as I would pay, in fact.
for us little time "pip-squeaks over here at arrayiT" .& just yesterday we locked in our dividend. So for some months we've been waiting for our 3 million dollars, special dividend, and lo and behold arrayit signs a funding deal with a Very nice Firm back east, China. Arrayit signs growth capital financing term sheet with a leading private equity firm and lender in Hong Kong China. So? I FIGURE MAYBE YOU "TALK WITH YOU'RE LEADERS" and ask if we can help you? and we will in-turn help amoy and recent genologies We are in the bufferZone? We Do have things Going in the BEST of technologies. USDA FDA AGRI cdc nih hlm nci ncbi among others around the globe. thanks for buying our reagents/software and hardware.. Check our twitter page sometime. It gives more detail with the USDA, FDA.
It all depends on what you believe this company is going to be worth some day - and how soon. The stock price is the market cap of the company. How much it's valued in it's entirety. Currently ILMN has a market cap of 22 billion and they earned 2 billion last year, representing a year over year growth rate of 163%. If that were to keep up, it would only take 5 years to exceed the current valuation bringing it up to 25 Billion in Revenue. However the relationship, in general, between fundamentals and company valuations is not one of correlation but rather one of causation. A stock price is the present value of all future expected free cash flows.
ilmn in the long term will be one of the best investments that you will ever make. It will become the most important company in the history of medicine. it will become a $100 billion company. Anyone investing now, and holding in the long term will be rewarded. However, there is weakness in the short term. Rumors of another miss in earnings are growing. In the coming weeks and months there will be a tremendous opportunity to make n initial investment, or to add to your current position. Do not miss it. Steal your grandmother's Social security check if you have to.
First, I already own the stock. I paid too much by a long shot (181 or so).
I will buy more when it becomes a value.
These numbers are too high right now:
Trailing P/E (ttm, intraday): 47.99
Forward P/E (fye Dec 28, 2016)1: 38.16
PEG Ratio (5 yr expected)1: 2.43 -- PEG ratio over 1.0 is always high risk.
Price/Sales (ttm): 12.28 -- Price/Sales over 5.0 is a problem.
Price/Book (mrq): 14.18
I have no idea how low it will go.
Seems to me that about 100$ is a good price. I don't know if you would ever get it for $100, but if you could, I think that is a safe price.
Book Value = $12, so you have to ask yourself how much of a premium over book you will have to pay.
I don't own, having always felt it was overpriced.