AIAdvertising Inc (AIAD)

[sello]

I always liked the price to sales ratio as it is a quick way to gauge value. With net earnings becoming less important than expansion and growth the P/S ratio has become a replacement for price to earnings which is based on net income. Always other factors that come into play, growth rate, debt to asset, etc, but by taking the ratio of the entire sector it gives a big picture perspective to how a specific sector is being valued.

First just establishing that CloudCommerce is categorized as an internet software company.



Then looking at the current price to sales of publically traded companies within the sector and finding the average. This data was compiled by New York University Stern.



http://pages.stern.nyu.edu/~adamodar/New_Home_Page/datafile/psdata.html

Just for anyone not familiar with how the P/S ratio is calculated.

The price-to-sales ratio (Price/Sales or P/S) is calculated by taking a company's market capitalization (the number of outstanding shares multiplied by the share price) and divide it by the company's total sales or revenue over the past 12 months. The lower the P/S ratio, the more attractive the investment.

So the ratio is 6.57 for internet software and calculating Clouds revenue for the last 12 months by taking the total revenue of 2019 of 9.2 million minus Q1 and Q2, plus the 2020 Q1 of 3.2, and figuring a minimum of 3.8 million for Q2 based on the projection of 14 million+ for 2020, puts trailing 12-month revenue at 11.6 million.

With a current market cap of $5.748,853 divided by $11,600,000 in revenue gives Cloud a price to sales ratio of 0.4956.

To get to a ratio of 6.57 cloud would need to have a market cap of $76,210,581.54.

$76,210,581.54 divided by $11,600,000 equals 6.5698

A market cap of $76,210,581.54 divided by the current shares outstanding of 645,938,541 would put the PPS at $.1179

Folks can think what they want but these ratios are based on the current facts about the companies in the sector. Whether Cloud reaches these types of numbers is speculation but clearly the current ratio of Cloud is very far below the sector average.

It's one thing to just throw a number out there, it's another thing to actually be able to weigh the companies value based on available data.

CLWD!!