Flexpower Inc. (FLXP)

[kermit42]

We can't go by that number because that is revenue, not earnings, which is what the P/E ratio deals with. Once you get earnings, you can apply some multiplier to get to an appropriate share price

The multiplier varies pretty widely according to relevant factors--the company's financial history, evidence of growth potential, strength of the market sector, the fact that it is a pink sheet stock, etc.

I recall the company saying profits were in the range of 40% (someone please correct me if I'm wrong) and I use a totally arbitrary multiplier of 10X (which seems to me to balance the company's lack of history and its status as a pinky with it's strong growth potential), we get:

[(3.3 million X .40)/6.1 billion] X 10 = .0022

That's my position on current share value.