Golden Matrix Group Inc. (GMGI)

[DewmBoom]

$GMGI PPS Should Hit a Minimum of $0.016...Take a Look

$GMGI is an audited SEC reporting company. Price to Earning Ratio (P/E) analysis shows that the Stock is highly Undervalued.

Earning has grown from negative in Fy2018 to 1.77 million dollars in FY2019. If I use FY2019 trailing earning, we come up with the following:

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

If I use a P/E of 20 for a trailing earning of 1.77 mil, I come up with a price of 35.4 million dollars. This means that the market cap of GMGI based on a trailing earning of 1.77 million dollars should be 35.4 million dollars.

The current market cap right now is 11.52 million dollars at a share price of 0.0042. Using a P/E ratio of 20, the stock price should rise to 0.013 based on FY2019 earning. Based on a very conservative FY2020 earning, using the reported FY2020 Q1 of $545K, with zero additional growth in quarterly earning, I come up with a total earning of 2.18 mil and a stock price of 0.016.

Note that this is a small growing company. The earning could rise at a much higher rate if the company continues to expand and acquire other companies. They can double or triple earning easily, especially since they are loaded with cash.

In summary, I am looking forward for a huge 2020....Stay Tuned and Happy New Year....This is going to be big.