Jan. 22 at 10:24 PM
$PLNH
Part 3
The bullish analysts are assuming Planet 13 Holdings's revenue will grow by 3.6% annually over the next 3 years.
The bullish analysts are not forecasting that Planet 13 Holdings will become profitable in next 3 years. To represent the Analyst Price Target as a Future PE Valuation we will estimate Planet 13 Holdings's profit margin will increase from -79.1% to the average CA Pharmaceuticals industry of 4.8% in 3 years.
If Planet 13 Holdings's profit margin were to converge on the industry average, you could expect earnings to reach
$5.8 million (and earnings per share of
$0.02) by about January 2029, up from $-85.7 million today.
In order for the above numbers to justify the price target of the more bullish analyst cohort, the company would need to trade at a PE ratio of 14.5x on those 2029 earnings, up from -0.7x today. This future PE is lower than the current PE for the CA Pharmaceuticals indus