RE: Twitter7 Oct 2020 20:37
Price all depends on when the market start to price in the earnings and how much advance value will be given for growth.
If we take the workings I did the other day based on the trading updateRNS, and 4 billion funding. Which is only one of three funding sources, so it will be more come these dates but these gives a base.
The following is the calculations valuations you may see going forward.
March 2021
Revenue £41,653,332.86
Net Earnings £20,826,666.43
Earrings per share = £0.00063
PE of 10 = £0.0063p or 0.63p share price
PE of 100 = £0.063 or 6.3p share price
Why would it warrant a PE of 100 or more. Because of the rate of growth and repeat future earrings.
March 2022
Revenue £139,133,332
Net earnings £69,566,666
Earnings per share £0.0021
PE of 10 = £0.021 or 2.1p share price
PE of 100 = £0.21 or 21p share price
Thats some big fluctuation between a PE of 10 and 100. The rate of growth will determine how high the PE goes.
If SYME produces growth over 2 or more reports at high rates, most in the market will know. By the time its 5 reports of growth, nearly every fund and investor may have some or be interested in some. The PE will always be high here i feel.