United Communications Partners Inc (UCPA)

[naturalborninvestor]

Your calculation is correct, your interpretation is incorrect

The currency cancels out so 0.19 is not a Dollar value. Your p/s ratio (for 6 months) is 0.19 and the p/s ratio on a 1-year performance is then approx. 0.1.

Now, if you conclude that the justified p/s would be 1 then the stock is undervalued by the factor 10.

The advertising industry was valued at 1.3 average in earlier this year, so by peer group analysis the stock would be undervalued by a factor of 13. You can add (higher growth rate than average) or subtract (less corporate governance) to that factor to derive a more customized interpretation, but 1x revenues seems a prudent valuation.