TheDirectory.com Inc (SEEK)

[rlord]

so what is this company really worth?

There are several ways to value a stock. In pinkieland, its mostly based on potential. But, in a simplified view, you can look at Assets minus liabilities plus the net present value of future earnings and dividends divided by the number of outstanding shares.

So, you do have to guess on future earnings. You can come up with an estimated pps by looking at similar companies and thier price to earnings ratio and applying it to the O/S and expected earnings.

The basics we have are 2.4 billion O/S. If the market values similar companies at a 50:1 PE, the company would need to make $48 million (annually) in profit to be valued at $1 share. Others may place that PE lower, others much higher.

So, when you ask what the company is worth, it's really "beauty is in the eye of the beholder"