Investing Basics – Feel free to ask the most basic questions

Hi,

I was trying to come up with an estimated price of the share 3 years down the line. Please let me know if this should be used for guidance

E.g Supriya Lifescience they’ve given a target for revenue of 1000Cr. And OPM 30%

That makes it 300 cr Gross profit

At 129 cr gross profit EPS is 11.2 so at 300cr that make it 26 EPS

At current Stock PE price would be – 26 x 22 – 572
If it gets re-rated considering stock PE moves to industry average – 735

So stock guidance provided the company hits their revenue targets would be Rs 572 – 735.

I’m a novice here. Would love to hear wether this assumption should be used as a guidance? If there are any errors in my calculation/ assumptions? Or this is a wrong way to approach it.