So in Feb '13, Griffin stated:
"We have calculated our 12-month target price from the estimated share profit in 2015, the first year in which we expect operations will be profitable for a full 12-month accounting cycle. (Note that we have not included upfront licensing fees in our estimates.)
Our price target was calculated by applying a price-earnings multiple of 54 to the 2014 estimated share earnings of $0.28 to arrive at a future value of $15.12 and discounted that back 1.5 years at an annual rate of 26%. The result of that calculation is a share
price of $10.25."
Now in May, they say:
"We have used a discounted future value approach to calculating our 12-month price target for Mannkind stock. Specifically, we have applied a price-earnings multiple of 38 to the estimated 2015 profit of $0.37 to arrive at a future value of $14. That was discounted back one year at a rate of 28%, giving us a target price of $11.00 per share."
Does anyone want to shed some light on the discrepancy, or is a matter of best guess with the numbers?
