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Sunesis Pharmaceuticals, Inc. Message Board

  • lovedavidtsui lovedavidtsui Oct 4, 2012 12:32 AM Flag

    $500m sales means pps=$100

    According to http://finance.yahoo.com/news/propthink-momentum-continue-snss-investor-153202685.html
    If sales is $500m, let's do some calculations to figure out what pps SNSS would be.
    The profit margin is around 70% in the bio-tech industry, then the profit of the sales is $500m x 70%=$350m.
    Let's assume that shares will be diluted to 70m within a few years, profit per share will be $350m/70m=$5/share. Take PE=20,

    PPS=$5/sharex20=$100/share

    We come up with SNSS=$100/share within a few years.

    Sentiment: Strong Buy

 
SNSS
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