Could someone please tell with what they calculate the stock would be worth based on a $2 Billion settlement and $300 million royalties a year? I'm trying to get an idea of how much I want to invest in the stock? I'm considering a huge buy in the stock......any help would be greatly appreciated.
My input, 300million bucks divided by shares oustanding fully diluted = a bit over $3 per share x's a PE of 8 = $24. That is without the one time cash payment, without the market valuing future growth via aquisitions etc...Just keeping my own minimums conservative..
Figure 100 million shares (includes all granted to insiders).
$2 billion = $20 in cash.
$300 million royalties = $3 EPS.
Add say another 10% for the other players.
Figure conservative 5 PE ratio for $3 earnings/year = $15.
$20 in cash + $15 + 10% = $35 + $3.50 = $38.50.
If they win, that is.
regarding your calculations, and a broad range of figures out there. Maxim estimates a $6.50 target, which has me concerned as Cliff Weinstein, Sr Exec for Vringo was once a Sr. Exec at Maxim, very suspicious. We have also seen $15, $30, to $64 projections, all based on an estimated settlement of around a $1b to $2b scenario, who's math is right? The trial lawyer should ask the jury, how would you feel if someone made $67b off your invention, and doesnt a $1b or $2b settlement seem disproportionate to the alleged crime of $67b?
You valuation is greatly appreciated!!!! I'm not a stock guru and don't anything about valuations based on settlement, but I am pretty keen on what to anticipate for numbers on a settlement. Thanks again and GLTA!
Thanks for breaking it down like that, though then take a percent out for lawyer fees correct? Thought in the CC they stated they figured 80% would go to the company.
Again thanks for the break down, was wondering how the PE ratio factored in.