fellow,
My math's not good, but I'll try: $500k*.4(margin)*6000=$1.2e+09. That is $1,200,000,000 over three years, without any acceleration=$400,000,000/year / 28,000,000 shares = $14.28/share * 40 (P/E) = $571.43 for a share of Cymer.
Why a 40% margin? Presently Cymer's gross margin is around 40% but lots of things come out of that before it hits the bottom line.
My admittedly bullish prediction is that this gross margin will expand and that net margins will expand too, but nowhere near 40%! I'd be extremely happy with half of that.
-Rob |
