Bots Inc (BTZI)

[lesgetrich]

I think that for the next year we should focus more on gross revenue and margins. mCig is still pretty much a startup company and most, if not all, of the earnings may go into startup costs and expanding the business.

But let's suppose that they could earn $2 million on $10 million in sales. If that were the case, then the EPS would be...

$2,000,000 earnings / 272,000,000 shares OS = $.007 EPS

If you give that a PE ratio of 20, a rational pps would be...

$.007 x 20 = $.14

... a PE of 40 for a growing company is still pretty reasonable. In that case you could double that estimate to roughly $.30/share. We could also find in 6 months that the revenue projection is now $20 million, in which case you could double again the rational pps estimates. Of course, one can never tell where sector hype and speculation could take the share price. Nevertheless, I find this kind of analysis useful in determining whether a pps is overvalued or undervalued