Posted this over on Yahoo and thought I might share it here will I had it still copied in memory:
Annual cost to Patient = 2000
After Partner & Costs, Contribution Margin(25%) = $500
Per Million Clients revenues generated = 500,000,000
Share count (550M + 50M (from 8k) + ATM???) = 600,000,000
Rev per share/million clients = $0.8333
Conservative P/E = 18
Market Size Type 1&2 (US + Canada) = 30M
Market Size Type 1&2 (US + Canada + Euro) = 70M
World Market Type 1&2 = 300M
Market Share = big questions: how much and how long to get there???
PPS Calculation = 0.833 * P/E * (Market Share * Market Size) / 1,000,000
Sample
PPS = 0.8333 * 18 * (20%*30,000,000)/1,000,000 = $90.00 (US/CAD Market)
PPS = 0.8333 * 18 * (20%*70,000,000)/1,000,000 = $210.00 (US/CAD/Euro Market)
PPS = 0.8333 * 18 * (10%*300,000,000)/1,000,000 = $450.00 (10% World Market)
Does not account for Technoshpere as a licencing op.
Enjoy the ride,
OOG
