InvestorsHub Logo

stervc

04/30/21 7:29 AM

#29441 RE: declaes #29437

Why 25 P/E Ratio and not 144 P/E Ratio...

You are correct. I could have used a much higher P/E Ratio somewhere between 100 and 144 as it is the Industry (or Sector) that dictates the actual growth rate for an Industry.

I just wanted to show that even with an ultra conservative P/E Ratio, GRST is worth pennies right now to show just how much it is extremely undervalued.

For those new for understanding what a Price-to-Earnings (P/E) Ratio is and key dynamics, it is referred to being the growth rate for a stock that exists within a particular Industry. Read the links below that hopefully will help one to see how it's used to assess the fundamental valuation of a stock:
http://investorshub.advfn.com/boards/read_msg.aspx?message_id=57154170
http://www.investopedia.com/terms/p/price-earningsratio.asp

To further articulate what I explained above, look at many of the major market stocks such as MSFT, CSCO, QCOM, AAPL, etc. Look at their Earnings Announcements and see how low their Earnings Per Share (EPS) is compared to the dollars per share price that those stocks are trading. They trade much higher than their EPS because the market takes into consideration the growth rate (or P/E Ratio) for the Industry for which they exist to trade. Hopefully this helps more investors to see how such works.

v/r
Sterling