Open cnjonesjr opened 5 years ago
Hello ARK Invest,
Thank you for putting up part of your model. I would like to confirm the calculations I made from it.
BULL BEAR
EV to EBIT 118 59 PRE-TAX MARGIN 7% 2% (Gross margin-SG&A-R&D) PRE-TAX DOLLARS $10,792 $2,014 (Revenue x Pre-tax margin) MARKET CAP TO PRE-TAX DOLLARS 125 57
Which then leads to these calculations:
PRE-TAX DOLLAR MULTIPLE 20 20 (my multiple assumption) VALUE $215,833 $40,280 (Pre-tax dollars x 20) VALUE PER SHARE $942 $198 (Value/# of shares)
If I am correct then assuming a multiple of 20x the Bull case gives a share price of $942 and the Bear case of $198 is close to the current $190.
Chuck Jones
P.S. I'm not sure the numbers line up for the BULL and BEAR case when you look at it. I apologize for any formatting that doesn't look right.
Hello ARK Invest,
Thank you for putting up part of your model. I would like to confirm the calculations I made from it.
EV to EBIT 118 59 PRE-TAX MARGIN 7% 2% (Gross margin-SG&A-R&D) PRE-TAX DOLLARS $10,792 $2,014 (Revenue x Pre-tax margin) MARKET CAP TO PRE-TAX DOLLARS 125 57
Which then leads to these calculations:
PRE-TAX DOLLAR MULTIPLE 20 20 (my multiple assumption) VALUE $215,833 $40,280 (Pre-tax dollars x 20) VALUE PER SHARE $942 $198 (Value/# of shares)
If I am correct then assuming a multiple of 20x the Bull case gives a share price of $942 and the Bear case of $198 is close to the current $190.
Chuck Jones
P.S. I'm not sure the numbers line up for the BULL and BEAR case when you look at it. I apologize for any formatting that doesn't look right.