$TALK- Absolutely huge week in store for iTalk Inc
Post# of 8802
Forward P/E Ratio Math w/$46mil revs
$46 million(estimated 2015 Revenue)
Divide $46mil(revs) / 1.8bil(shares) = $0.0255 EPS(earnings per share)
.0255 x 100 = $2.55(PPS based on fair p/e value of 100)
P/E Ratio is PPS/EPS Example: $2.55 / $0.0255 = 100
If P/E Ratio = 100 then PPS = $2.55 (Price Per Share)
A forward looking p/e of 100 is fair considering the growth rate because in a year earnings nearly double.