RE: 15023 Aug 2021 19:00
Prion
If the figure of £146.5 million in sales for 2021 becomes reality and then the figure of £583 million becomes reality for 2022 as in the article that you posted, then the SP for SNG will be massive.
The average PE ratio for pharmaceutical companies is circa 80, so even if earnings were only 10% of sales that’s £14.65 million x 80 = £1,172,000,000 divided by the 200 million shares in issue = £5.86 per share and if we use 10% and apply it to the forecast for 2022 of £583 million we get £58.3 million x 80 = 4,664,000,000 divided by 200 million shares in issue = £23.32 per share.
Of course earnings may well be considerably more than 10% of sales, if they were 20% then you can double the prospective share prices above, so you can see why some people posting here believe that £50 a share is possible.