iTalk Valuation 2 ways
P/E Ratio can't be used until there are verified profits but here is a way to find where TALK should be trading; Price to Sales Ratio
We know sales are near $30,000,000
We know what the O/S is at 1,875,000,000 or greater
This will be the top of the trading range if SEC filings are accurate:
$30,000,000 divided by OS 1,875,000,000
equals .016 RPS (<----revenue per share)
.0015/.016 (share price/rev per share) gives us the P/S Ratio
p/s ratio = .09375; Undervalued by a factor of 10
what it should be:
move the decimal .015/.016 =.9375 (<----Nearer to 1 x revenue means TALK should currently be at 1.5 cents per share))
Hypothetical worst case if there was a 10 billion share OS:
$30,000,000 divided by OS 10,875,000,000
equals .00275 (<----revenue per share)
.0015/.00275 (share price/rev per share) gives us the P/S Ratio
p/s ratio = .5454; Still only trading at half of revenues
Market Capital gives a quick glance:
OS times PPS
$2,812,500 is a fraction of estimated sales of $30M
FOOD for THOUGHT!
