Future Share Price

On the basis of my previous article I made an estimate that Frontier would sell 4 million units of Jurassic Park Evolution in it's first year across all platforms.

Each unit costs a lowest amount of £44.99. The deluxe edition cost £49.99 and has been outselling the standard in console sales, however to be conservative for this calculation we shall use the basic low price rounded up to £45.

Total Revenue on 4m units: £45 x 4,000,000 = £180,000,000

Minus 20% VAT = 144,000,000

Minus Steam/Platform commission of 30% = £100,800,000

Minus Universal commission 10% = £90,720,000

Minus Development and Company Costs of 41m = £49,720,000

Development costs for JWE were stated to be 11m, this will come out of 2018 financial year, so the development costs to deduct from this will be those of the fourth franchise (as yet unannounced). But let's assume it's the same at 11m. Company costs of £30,000,000 based on previous years

Income after tax (15% Corporation tax after deductions) = £42,262,000

Total Profit = £42,262,000 

This number discounts any income from Planet Coaster and Elite, along with any future DLC for JWE.

Earnings Per Share

£42,262,000 / 38,660,000 (shares) = £1.09

Per Earnings Ratio

Current Share Price 26/06/2018 : £14.45 

14.45 / 1.09 = 13.26

This is far lower than the current P/E ratio of 64.29.

Using 64.29 to calculate future share price we get:

1.09 x 64.29 = £70.07

Share Price

According to this calculation we would get to a share price of £70.07. (484% Growth).

A lower P/E ratio of 40 would get a share price of £43.60. (302% Growth).

Date: 26/06/2018