You know a business is not valued by profit margin alone. There are many factors that go into PPS. Quality of products, relationships, potential repeat business, reputation among customers, relationships with suppliers. You can also value a business based on the potential of the industry it is in. This industry has a lot of potential, thus .0025 is probably well supported. If they sell 3,000 units a month, their PPS would be something closer to .009.
RFMK