Say a $500 Billion/Year industry,
- Assume 1% Market Share ($5B/Year Sales)
- @ 20 % Gross Margin after costs ($1B/Year Profit)
- Divided by 210M Outstanding Shares ($4.70/Share)
- X 20:1 Ratio (Standard Price to Earning Ratio of Stock Price)
- Answer $94/Share = Getting Really Rich
- More than 1% Market Share = Getting Really Rich
- More than 20% Gross Margin = Getting Really Rich
Predicted Value of P2 - hmmm, I am comfortable @ $15B