Patient Access Solutions Inc (PASO)

[Roofus]

$100 million in revenue (for PASO) would put us over $1.00 per share.

Normally a generic market cap valuation is 6 or 7 times revenue.
But this is a much higher profitable industry than most.
This isn’t selling retail products at a retail store.
This is the medical industry, and the mental health industry at that.
Huge profit margin industry, and a growing sector by the day (was even growing exponentially before Covid).
The mental health industry has never been bigger.

So instead of 6 or 7 times revenue, market cap here should be at nearly 15 times revenue.

For a more detailed market cap calculation.
$100 million in revenue, let’s say 40% profit margin / earnings in this high profit margin industry.
Therefore, $40 million in earnings, multiply by a PE ratio of 35 = market cap valuation of $1.4 billion.
That puts share price here over $1.00.

This industry is for sure going to have a very solid PE ratio.