Market Cap is the total amount of shares outstanding multiplied by the share price. I don't know where your getting sales multiplied by total share amount.
Current P/E is Price divided by current earnings.
If the stock is trading at 20.00 and they earn 1.00 or are estimated to earn a dollar then the P/E is 20. Industry average for the S&P 500 for P/E ratios is 19 (In a good market, this is data based on 50 years). Growth companies in Nasdaq are around 20, 25 sometimes 50 depending on what industry they are in.
If you want to calculate Future P/E and future earnings. Just estimate what 2010 and 2011 will be. If the stock price goes to $1.00 now or tomorrow then people are willing to pay 50 (or whatever the stock's price divided by earnings) times earnings because of future growth potiential in profits in the company, it will be crazy but I've seen it all.
With billions of shares outstanding and the float increasing daily, good luck investing in this companies stock. If the books aren't cooked and there financials are auditied by a real CPA firm, then I can see a reverse split so they can be uplisted into an exchange that they can capitalize on for future offers not a simple dilution offering but a legit public offering.
What confuses me in reading there 10-q is that they have no cash but an increase in there account receivables which I've seen ruin a company because they are insolvent.
They might need to write alot of it off which will decrease there past profits dramitically. If they are willing to release there account receivables list and see who is past due 30,60,90,120 days would be a good idea for them.
I also noticed in there cash flow report a decrease in cash when they reported a profit which is never good. You should always have an increase in cash when making a profit, that is why looking at the account receivables in a balance sheet is important in analyzing a stocks valuation or value. You can catch the BS.
There is an equation you can use for revenue and stock price, but you have justify earnings. Which is very hard to judge a stocks valuation when looking at the balance sheet. Yeah company XYZ might make a billion in sales, but if they can't collect the revenue they make into a profit then they will become quickly insolvent and go out of business (You can see it happening when cash decreases quarter after quarter when they have reported profits and account receivables increase the same amount with sales). Then the IRS will audit them and company XYZ and everyone involved will go to jail for cooking the books.
This post is an opinion of mine. Some of it at least, other is knowledge. Forgive my spelling errors. I grew up with spell check.
Good luck.
