Replies to post #6766 on Eagle Worldwide Inc.(fka ELWD)

[4Godnwv]

Well...

Net income is calculated by subtracting expenses from revenues. That quarterly total is then divided by the O/S. The quotient would be the EPS.

Since the P/E ratio is the quotient of the pps (price per share) divided by the EPS, then:

P x E = M (where P = the P/E, E = the EPS, and M = the market value or pps)

You can punch in the numbers and solve the equation. The wild card here is the P/E - I honestly have never found any work done that suggests how to assess a P/E value for a sub-penny, but since growth potential is what drives people to pay 15 -20 times the EPS of a Nasdaq stock (often much more with techs) - I'd have to think that the muntiple would be fairly high.

As previously stated finding a sub-penny with ANY earnings is rare. If we used standard formulas we'd be paying .000000x for most of this stuff.