Replies to post #524 on Charlotte's Web Holdings Inc (CWBHF)

[trademax42]

Ok then let's talk about MC of another company in a similar space. IG*C comes to my mind, currently has MC = $135 million, PPS = $4.05 and the revenues $2.2 million. Only 3 days ago it was trading at PPS $12 to $14, and MC = over $400 million.

So for IG*C:

Revenues = $2.2 million in 2017.
MC = $135 million
MC is normally a multiple of revenues. The multiple comes to 61.36 in this case.
MC was around $400 about 3 days ago, hence the multiple was 181.8.

https://ca.finance.yahoo.com/quote/IGC/financials?p=IGC

If we apply these multiples to Charlotte's Web:

Revenues = $40 million in 2017
Using 61.36 as a multiple, MC = $2.45 billion.
Using 181.8 as a multiple, MC = $7.27 billion.

Actual MC for CWBHF now = $1.21 billion diluted.

But based on other co's revenue multiples in a similar space, estimated potential MC ranges from $2.45 billion to $7.27 billion.

TLR*Y has a lot higher revenue multiplier for its recorded revenues (MC = $13.7 billion).

CWBHF's MC has a long way to go up, if you base the estimates on two other co's multiples I mentioned above.

By all means John, it’s just that I don’t like to pretend the market cap is lower than it is.

$CWBHF$

Disclosure: My posts are just my opinion, not intended for investment advice. I'm often wrong in my opinion. Therefore, trade/invest based on your own DD.

[JohnCM]

Respectfully, I never look at market cap.

By all means John, it’s just that I don’t like to pretend the market cap is lower than it is. I never look at the share price of a stock, always market cap. The fully diluted number at that, just so I don’t trick myself into believing there’s more value on the table...

To each there own though. Best of luck to you....