Golden Matrix Group Inc (GMGI)

[DewmBoom]

Price to Earning Ratio Analysis.....Stock is Undervalued

Earning has grown by 27% from Q1 to Q2. If we assume earning will continue to grow at this rate as a conservative estimate, we come up with the following:



I used a couple of sources tonlook at a typical P/E ratio for the gaming/casinos industry. The average P/E ratio is about 20.

If I use a forward P/E of 20, based on an earning of 2 million dollars, I come up with a price of 40 million dollars. This means that the market cap of GMGI based on a forward earning of 2 million dollars should be 40 million dollars.

The current market cap right now is 8.8 million at share price of 0.0031. Using a P/E ratio of 20, the stock price should rise to 0.014, which is about 350% increase relative to the closing price on Friday.

Note that this is a small growing company. The earning could rise at a much higher rate if the company continues to expand. They can double or triple earning easily.

Stay Tuned!

References:

http://pages.stern.nyu.edu/~adamodar/New_Home_Page/datafile/pedata.html
https://csimarket.com/Industry/industry_valuation_ttm.php?pe&ind=904
https://www.otcmarkets.com/stock/GMGI/security