Replies to post #50385 on Arrayit Corporation (ARYC)

[Delsurfer]

Do you know what the P/E ratio is? It's the price per share divided by their earnings per share. Arrayits is negative because they last reported a loss.

For Arrayit to even report .01 per share earnings they would have to have approx $10nm in profits, not revenue.

[MikeCr]

1. I don't think that Arrayit "is in the top 10 in Biotech"


2. Let's not confuse P/E and P/S ratios. (S=sales, E=earnings, P=Price)


Thermo Fisher has P/S = 3.8 with sales of $18 Billion and P/E = 32.8


http://financials.morningstar.com/competitors/industry-peer.action?t=ARYC®ion=usa&culture=en-US


3. Arrayit has had negative E with sales of $4M to $5M in the past.


4. Now Arrayit has said that if they can get $20M Sales they could have Earnings of $2M to $3M


So pro-rating

 $8M Sales could give them around $1M Earnings 


P/S of 3.8 means market cap of $8M X 3.8 = $30M or pps = 0.03

P/E 32.6 means market cap of $1M X 32.8 =$32.8 or pps = 0.0326