Morning little fella,Just been reading the assumptions in the...

Morning little fella,

Just been reading the assumptions in the post (not yet read the full download).

Coupla comments.

*the valuation depends entirely on the sales forecast both on the upside and the downside
*DCF - I reckon 10% is a reasonable rate to use and is roughly what companies will be using for investments; Institutions may use a differrent rate to assess fair value from their point of view and this needs to be considered in assessment of the PE/share price at any point in time
*Distributor margin - this will depend product by product on the amount required to give the distributor a reasonable profit - low service high volume product= low margin and high service low volume (per end user)= high marging - my guesstimate is that for quantiferon the margin might be closer to 30% than 20 or 40

Now to read the full works