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Non-Tech : Western Oil and Tire Distributors (WOTD)
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To: D LEE who wrote (30)4/20/1998 5:09:00 PM
From: Tony  Read Replies (1) of 255
 
Ignoring fallout from the split and assuming no lawsuits, and that WOTD is successful in making a $200 million company, am I correct in believing it's worth about $6.00 share?

$200 million revenue x 10% profit margin = $20 M profit
$20 M profit / 50 M shares = $.40 EPS
$.40 EPS x 15 PE = $6.00 share
(PE 15 used because Tire and Oil is a mature industry)

Or is there a better way of figuring this?

-Tony
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