Market multiple valuation of On4 Communications Inc.(ONCI USA)
The most common multiple used in the valuation of stocks is the P/Earnings NTM multiple (Price to Earnings). P/E relates the current share price with the market expectations in terms of Earnings Per Share. This multiple is used to compare a company's market value with its earnings. A company with a high P/Earnings NTM is considered to be overvalued; a company with a low P/Earnings NTM is considered to be undervalued. The P/Earnings NTM ratio of On4 Communications Inc. is significantly lower than the median of its peer group: around 15.00. The company valuation of On4 Communications Inc. according to these metrics is way below the market valuation of its peer group.
The company valuation of On4 Communications Inc. according to these metrics is way below the market valuation of its sector.
Onci is a sound investment (per multiple studies) and significantly undervalued. Share count and revenue will reflect on the audited financials on Jan 31.