Interesting the Rodman & Renshaw Analyst report on poet, said we should trade in the 60cent range before moving onto $1.50. Currently that’s where we find our SP. Next stop $1.50 perhaps.

Based on a collection of semiconductor companies that generate sales that range between $40 million and $100 million, we found an average enterprise-to-sales valuation ratio of 2.1x on forward estimates and 2.6x on past annual results. Given our estimation that POET drives to $50 million in sales in the year 2020 with a forecast $80 million sales level in 2021, we have discounted the 2.6x and 2.1x, respectively, valuation back two years, again using POET’s WACC of 9.8%. Based on these calculations and the comparative valuation of recent stock market prices, POET shares should trade in the 60 cents per share range. In combining the two results—DCF and comparable analysis—through an average and rounding to the nearest half dollar, we are offering our price target of $1.50 per share.