PPS Calculation Tools

[DogDayTrader]

Formula for PPS Calculation (Post Approval)

With everyone asking about PPS post approval of this drug or that device I figured there had to be a way to calculate some estimates. While perusing the google boards one evening I came across the formula below.

You will have to do a little research to define the variables used in the equation and some numbers you will have to formulate your best guess on (i.e. revenue and market penetration from a product that has not been released yet). In most cases information to help you determine values for the variables can be found at the company's website and by googling statistics for specific medical conditions (i.e. number of people in US that suffer from high blood pressure).

This is a formula for PPS Calculation by Srini Mandavilli and explained in the article (b.o.p), by another author, about NEPH but the calculation would be the same.

Nephros (OTC:NEPH): Three FDA Decisions, One Company

((C*R*P*N)/E)/S

Where:
C = Total Customer Base
R = Annual Revenue Per Customer
P = Potential Market Penetration
N = Net Profit Margin
E = Cost of Equity
S = Number of Shares


NOTICE: I make no claim as to the formulas accuracy or reliability as it is not something that I have used before, but the methodology seems to make sense and thought I would post for your information.

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Fair Value Calculator

This nifty little calculator was found by our own FavStocks. It is similar to the formula above but a whole lot easier to use and the best part of all it's a lot less work.

Discounted Cash Flow Calculator for Stock Valuation

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Stock PPS Calculator

Just stumbled upon this site, just plug in the required variables from yahoo's finance section (found below the calculator) or other source and viola, it spits out the answer.

Stock Price Per Share Calculator - Find Out What Your Stocks Are Really Worth

[FavStocks]

Good stuff!

[TheStockDude]

I think the formula makes sense. I posted the formula using the numbers for HEB here:

http://www.favstocks.com/forum/hot-s....html#post1382


The numbers for VNDA and TTNP are also there so you can see some past examples explained.

[stockish24]

Thanks Dogday trader for PPS formula. Was there one formula based on EPS, P/E ratio and Sales? I did see somewhere, not able to remember.

[DogDayTrader]

Thanks Dogday trader for PPS formula. Was there one formula based on EPS, P/E ratio and Sales? I did see somewhere, not able to remember.

Didn't see the one you are referring to, but did come across this one:

Stock Price Per Share Calculator - Find Out What Your Stocks Are Really Worth

[medtac0244]

Thanks for sharing.