Enzolytics Inc (ENZC)

[Wisdom of Locke]

Let's talk valuation!

First of all "3 years" is completely misleading. As someone else said, it's been 18 months since Oct 2020.

But, the poster is (partially) correct. It's not revenue, but PROFIT, that is the main driver of stock valuation. There are many others - revenue, consistency, IP protection, key executives, key strategic customers/partners, the discount rate of the general economy, the inflation rate of the general economy, the breadth of the opportunity being pursued, the competition, whether the company is a takeover target (Twitter), whether the company is the subject consumer action (Disney),


Also, there is the 2nd order issues of momentum of revenue, momentum of profits.

With ENZC, the issue is - do they have something? If they don't, the stock is way overvalued. If they do, the stock is way undervalued. That is why smart investors shouldn't care about small price moves here and there, but about a focus on whether the IP has value. All revenues and profits and ultimately, the stock price, will be a function of that issue.