SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Biotech / Medical : VISX
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: Steve Hufnagle who wrote (1370)11/6/1999 10:47:00 PM
From: MGV   of 1754
 
That is the bottom line for every stock.

How much is not enough for VISX? ; )

At 67 it is priced less than 35 times forward 12 month earnings. With a market growth rate of 80 to 100% in procedures, VISX could lose some market share to competition, cut royalties and it would still have room to sell at a discount to earnings growth rate at the current price.

So what if, they force NIDEK out of the market, Bausch and Lasersight agree to pay $250 per pop royalties and VISX ends up effectively gaining share? What if procedure growth is closer to 100% next year - as it was this year? And what if the market pays up at 1 X VISX's growth rate under this scenario? If all of that were to play out, VISX's fair value today would be 1.90 * 100 = $190 based on today's consensus. And if you cut that in half! because you think those numbers are a little too aggressive, fair value today would be $95.

$67 discounts plenty of worries.
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  

HomeMailHotSubjectMarksPeopleMarksKeepersSettings
Terms Of UseContact UsCopyright/IP PolicyPrivacy PolicyAbout UsFAQAdvertise on SI
© 2025 Knight Sac Media.  Data provided by Twelve Data, Alpha Vantage, and CityFALCON News