Here is the simple way I estimate near term PPS, assuming a very good litigation outcome. You can plug in your own assumptions.
PTSC EPS was 7 cents in 2006 and 6 cents in 2007.
If the settlement gave us 15 cents for the quarter, the calculated annual EPS would be 60 cents – going forward.
So with a going forward EPS = 60 cents
And the (going forward) P/E ratio being 25
The PPS would equal $15
This could be the near term result from a good settlement. Future quarter actuals (EPS) would IMO quickly drive the PPS up or down. We'll need institutional investors to get to big PPS numbers.
Extracts from Reuters Company Research
The faster a company grows, the higher its stock's P/E can be.
PTSC
4 institutions own 0.0% of the 0.39 billion commonshares outstanding. This is lower than the averageinstitutional ownership of the CommunicationsEquipment Industry at 47.1%, and lower than theaverage of the S&P 500 as a whole which is 71.2%.
