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kris_kade

06/28/07 9:57 AM

#3967 RE: Tuff-Stuff #3966

Based on the normally accepted Price to Sales ratio valuation model, could GTCB fetch north of $5 pps in 2008 or beyond ?

If we take the reasonable ratio for such companies to be 1 (PSR = 1), GTCB need to book 0.5 billion dollars (12 months trailing) to have PPS of $5. And assuming 0 long term debt.

I used the formula (PSR = ((Total common * PPS) + debt))/Sales)