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Biotech / Medical : Zonagen (zona) - good buy? -- Ignore unavailable to you. Want to Upgrade?


To: Bob Trocchi who wrote (6246)3/1/1999 10:20:00 AM
From: Diamondcutter  Read Replies (1) | Respond to of 7041
 
Bruce...

I don't think the lifetime sales potential estimate is designed for your "P/E" calculation, but rather by market value. After taking out income tax from the royalty stream, subtract debt (zero I believe), add cash, add any value you prescribe for existing and new products and then divide whatever you come up with by the number of shares to get the implied value per share. This number should then be discounted somewhat as this value comes in over a period of years.

Diamondcutter