Bravada International Ltd (BRAV)

[Beezerr34]

A PE of 10 would be INSANELY low. First you would have to annualize everything. You can't just take the first quarter's profit and then come up with a total valution based on a PE of one quarter. A 100k profit in a quarter would be annualized to a 400k profit, and, even with a PE of 10, that would already quadruple your valuation. Now what if the next quarter shows a profit increase of 50%? Now you need to annualize everything again to come up with a more accurate value, and, since your PE is a trailing 12 month number, that number would continue to increase exponentially until the growth slowed down.