Sonasoft Corp (SSFT)

[rbirdy]

Proper P/S ratio:

Conservative: 15m x 10x multiple = $150m market cap
Current market cap = $30m (only 2x multiple)
$150m / $30m = 5x > $.50

Top end of market: $15m x 100 multiple for high growth companies growing around 40x y/y
$15m x 100x multiple = $1.5b
$1.5b / $30m > 50x > $5

The last example is caused by lower interest rates and is roughly what similar SaaS companies can trade at. I’d say a fair value for Sonasoft should be roughly .50-.70 in today’s market place but could be much much higher on a senior exchange with more volume.