If,21 Apr 2021 13:30
If, By Example, TRD achieved my £500,000 profit forecast, last year, and they go onto make £2M this year, (as I also predict. :)
Market cap after cash deduction is £16M today.
On £500,000 profit PE would now be 32.
On a prospective PE for the current year that would fall to a PE of just 8, and under 4 the following year, 23/24.
TRD”S competition in some cases now trade over 100, on an historic basis, as investors rate them extremely highly.
In plain English that”s £100M of market cap per £1M of profit.
Thus, an absolute maximum target value of TRD next year, after declaring £2M profit would be £200M.
That’s 13 times today’s share price.
Assuming TRD only achieve a rating of half that or 6.5 times today’s share price.
Assuming TRD only achieve a rating of one quarter or 3.25 today’s share price.
Assuming TRD only achieve a rating one tenth or 1.6 times today’s share price.
One can observe from above , it’s not massive profits that are required, at this junction, it’s TRD”S potential to grow profits year on year at my predicted rates of
300%, in 21/2 falling towards 100%, year on year for the next 3 years.