Shares of Herbalife could more than triple in price from its current levels, Robert Chapman of Chapman Capital says.
"Today, I think the stock should be trading at $75," he said. "And I get that on a simple 15 multiple on $5 of 2013 earnings, and you can look at similar cash-flow numbers and come up with the same number. But that's not really a big-picture story."
Herbalife stock closed Wednesday up 9 percent at $65.50.
On CNBC's "Fast Money," Chapman said he saw huge potential upside in the stock.
"The big-picture story here is the stock going to $300," he said. "And that's where I think the stock is going if it stays public."
Chapman said he was looking at the similarities between Phillip Morris 13 years ago and Herbalife now.
(Read more: Soros takes large Herbalife stake, shares spike)
Among them were: Low enterprise value to EBITDA, regulatory risk, massive free cash flow, aggressive stock buybacks and an international spinoff solution to U.S. regulation.
"But the difference with all those similarities is that Phillip Morris makes products that kills people, millions a year," he said. "Herbalife makes a shake that saves lives."
Chapman said that a leveraged buyout was one of two likely outcomes for the company, whose stock he counted among his largest holdings.
"If it stays public, Herbalife becomes a public-company LBO. They very steadily buy back stock with spurts of shock-and-awe-type bazooka repurchases," he said. "A $1½ to $2 billion repurchase is very affordable, given the cash flow of the company."
"If that doesn't happen, it will be because somebody LBO'd it first," he said. "Don't forget that LBOs are in Herbalife's DNA."
Chapman alluded to a series of LBO attempts over the past several years.
"At some point, Herbalife will get LBO'd again," he added. "But it may very well be in five to 10 years at $300 a share instead of being at $90 or $100 in 2014."