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Sunwin Stevia International, Inc. Message Board

  • rhinoman712 rhinoman712 Jun 21, 2008 10:06 AM Flag

    What is the value of SUWN?

    Per the Q3 earnings release, Sunwin is expecting RECORD RESULTS in 2009, so I thought I would calculate a possible value range based on the revenue and income trend we are seeing.

    On the low end, let's assume they equal last quarter's net income for each quarter of 2009:

    $633,000 x 4 = $2,532,000 net income / est. 100,000,000 OS = eps of .025

    If we see RECORD RESULTS as they say, let's assume that figure is 50% higher, or an eps of .038

    At the very low end:
    .025 @ p/e of 20 = $0.50

    If the 50% growth is assumed:
    .038 @ p/e of 20 = $0.76

    At 50% growth, a higher p/e of 40 to 60 would be possible:

    .038 @ p/e of 40 = $1.52
    .038 @ p/e of 60 = $2.28

    Now let's assume mega growth, say 100%, with the high end p/e of 60:

    .05 @ p/e of 60 = $3.00

    This is a wide range, but I believe a forward-looking valuation could fall anywhere in the $0.50 to $3.00 range. At the high end of the range, we're looking at 10-bagger potential here from the current pps.

    The annual earnings report in August should give us some better guidance, but no matter how you look at it, we're undervalued.

    Rhino

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