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Replies to post #131864 on Digital Brand Media and Marketing Group Inc (DBMM)
Stock_Barber
04/22/17 8:01 PM
#131928 RE: Ivegotanace2 #131864
On the other end of the spectrum are service companies that are essentially ‘body shops.’ These companies can only grow as fast as new employees can become productive. Typical examples are web design firms, management consultants and human resource companies. These types of companies are often valued at PSRs of 0.5 or P/E multiples as low as two or three. This is also partly because the revenue predictability of these types of companies is low and because they usually have small percentages of recurring revenue.