Falling...Value Click, a competitor, has a Price/Sales ratio of 2.6X. This multipler appears to be similar to others in this industry/sector. Assuming we double revenue for Q3 2009 ($14.4M) than Q3 2010 should be near $29M. Although mgt. guidance has stated $25M, either way we are looking at slightly over $100M in the next 12 months. If we estimate doubling that, say $200M in 2012 and applying a 2.6x = $520M market cap
or,
$200M in rev, less 55% cost of goods, less $40M SGA (current is $8m per quarter) we come out with about $50M in earnings before taxes, less 35% tax rate = $32.5 or about $1.35 eps
Just food for thought.
