PE,Net profit Margin,Growth %,Market Cap to Sales
Let's be accurate :
The PE of 15 is to be applied for standard stock with slow growth .
Look at these Nasdaq Goliath :
.1) CSCO,ORCL,MSFT and a smaller MSTR co in average:
P/E=25 , net profit margin = 20% , sales growth 15%-20% , Market Cap to Sales = 5 x
.2) If you consider APPLE AAPL : when sales growth pace around 50% .
P/E=40 , net profit margin = 10% !! , sales growth 50%, Market Cap to Sales = 20 x !!
SO to be fair a small company like AERO has a lot of growth and the model to apply here should be the second model like AAPL :
You have the choice to select the PE of 40 or Market Cap to sale of 20 ? or just consider the Market Cap to Sales of 5 from the model 1 ? Every data you consider above make FCCN much higher than .0375 a share.
I would rather consider a reasonable valuation based on : FCCN should be valued at 3 x the Sales .
So suppose 10M in sales give a Mkt cap of 30M : and you have .075 a share (30M/400 shares). And apply this multiple to the actual Annual sales
Cheers Buddies
The reason I need Good DD's :
