CV Sciences Inc (CVSI)

[HopeSkeptic]

My PS valuation guesses into earnings using price to sales. (I would appreciate any feedback from more experienced valuation analysts.)

Through Q2 our trailing 12 mo sales are $33.2mil divided by shares out of 93 million, gives .36 cents sales per share. With stock price at $6.40 market is giving us a Price to Sales multiple of 18.

So, holding the same multiple of 18 for now, I would say Q3 rev of $15 mil should price us at $8.24 (=18x.458 sales per share); sales of $17 mil should price us at $8.64; and sales of $20 mil should price us at $9.22.

If the market values the management execution on another solid growth quarter and/or starts to value Farm Bill legality more significantly and overall growth of CBD market, the multiple could go up to 20, 22, 25+? Multiples that are still 1/3 of the top MJ companies.

So for PS multiple of 22, earnings of 15m could price to $10.08; $17 mil rev could price to $10.56; and 20mil rev $11.26.

And just for fun... PS multiple of 30 and Sales of $24 mil = $16.62. Once can hope to be shocked to the upside :)

And for real fun, perhaps a short time Tlry-like stupid valuation bubble: $20 mil sales and 100 multiple= $51.20.