Replies to post #33105 on Woodbrook Group Holdings Inc (WDBG)

[trademax42]

Another way to look at the PPS estimate is to use the PE ratio on EPS (earnings per share).

Taking your revenue number at $20 million. Assuming a net income 20% on the top line figure (just a guess of 20%).

Net income = 20% of $20 million = $4 million.

PPS estimates:


OS = 1.25 billion

Net Income = $4 million

PE ratio = 32 (Used Brokerage and Investment Banking)

http://pages.stern.nyu.edu/~adamodar/New_Home_Page/datafile/pedata.html

PPS estimates = ($4 million/1.25 billion) X 32 = .10 cents.

If OS is currently less than 1.25 billion, PPS estimates should go up accordingly. Also, if AUM goes up, so will be the top line and the PPS estimates.

$WDBG$

Disclosure: This is just my opinion, not intended for investment advice. Do your own DD before trading/investing.